Mining Stocks
While sometimes risky, mining stocks can also be strong performers when commodity prices move up. However, due to the volatility of these stocks, Pat McKeough recommends that they only form a modest part of a well-balanced portfolio.
Canadian penny mining stocks are some of the riskiest stocks you can buy. These companies are trying to find mineral deposits that mine at a profit and such a find are exceedingly rare. Because of this, it’s even more important to look for investment quality in penny mines.
For example, we automatically rule out investing in penny mines that promote themselves too aggressively or do so misleadingly. The mine-finding effort is more likely to succeed if the managers focus on finding a mine rather than hyping their stock.
Junior mining stocks are usually smaller companies that typically take on riskier mining projects. However, if a junior mining stock is successful at finding and mining, it can mean huge returns for investors.
No matter what type of mining stocks, or other stocks you invest in, TSI Network recommends following our three-part Successful Investor strategy:
- Invest mainly in well-established, mostly dividend-paying companies;
- Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities);
- Downplay or avoid stocks in the broker/media limelight.
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On Monday, gold closed at a new record high of $1,898.10 U.S. an ounce. Prices have since pulled back to around $1,861.30 U.S., but that’s
Endeavour Silver Corp., symbol EDR on Toronto, operates the Guanacevi and Guanajuato silver/gold mines in Mexico. We analyze Endeavour in Stock Pickers Digest, our newsletter for investing in aggressive stocks—including junior mining stocks. In the three months ended June 30, 2011, the junior mining stock’s revenue rose 84.7%, to $36.4 million from $19.7 million a year earlier (all amounts except share prices in U.S. dollars). The company earned $0.20 a share in the latest quarter, compared to a loss of $0.05 a share. Cash flow rose 125.0%, to $0.27 a share from $0.12 a share....
Prices of copper and many copper stocks have moved down lately, along with stock markets. That’s because of investor concerns about the global economic recovery, ongoing European debt problems and continued weakness in U.S. housing markets. In addition, the March earthquake/tsunami/nuclear disaster in Japan crippled many of that country’s factories. These facilities are now resuming production, but Japanese consumption of metals, including copper, will need more time to return to pre-disaster levels. (You can get our latest outlook on copper prices—and our top picks in copper stocks—ABSOLUTELY FREE in our new report, “Copper Mining: How to Choose the Best Copper Stocks and ETFs to Profit from the Reconstruction of Japan.” Click here to download your copy today.)...
The German government recently announced that it plans to shut down all of its nuclear reactors by 2022. Germany’s decision is the result of anti-nuclear sentiment in the wake of the earthquake and tsunami in Japan, which damaged the reactors at the Fukushima nuclear plant. Right now, nuclear reactors supply about a quarter of Germany’s electric power. It’s doubtful that the country can replace that with wind and solar. What’s more likely is that Germany will have to increase its already large imports of electricity from France, where nuclear already accounts for about 80% of electricity generation....
Breakwater Resources, symbol BWR on Toronto, mainly produces zinc. The Canadian mining stocks operations include the Myra Falls mine in B.C., the Mochito mine in Honduras and the Toqui mine in Chile. Work is on schedule to restart the Langlois Mine in Quebec in the first quarter of 2012. We analyze Breakwater in Stock Pickers Digest, our newsletter for aggressive investing In the three months ended March 31, 2011, Breakwater earned $30.8 million, or $0.39 a share. Of this, $19.0 million, or $0.24 a share, was from an income-tax recovery. In the first quarter of 2010, the company earned $24.9 million, or $0.36 a share....
You’ve likely noticed that the prices of many resources—and mining stocks—have risen sharply.
We think resource prices could well move even higher in the months and years ahead. In the near term, resource demand should rise as the Japanese government rebuilds the areas affected by the recent earthquake and tsunami.
Over the longer term, resource prices could soar as the global economy continues to recover. Moreover, fast-growing economies, like China and India, will continue to have a positive impact on resource prices.
Even so, the resource sector continues to be highly volatile, and investing in mining stocks has many hidden risks. In order to reap maximum profits—and avoid the pitfalls—you must know exactly which stocks to buy.
I’ve just written a new free special report to help you zero in on the mining stocks (including uranium stocks, metal stocks and junior mines) that are in the best position to take advantage of rising resource demand.
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We think resource prices could well move even higher in the months and years ahead. In the near term, resource demand should rise as the Japanese government rebuilds the areas affected by the recent earthquake and tsunami.
Over the longer term, resource prices could soar as the global economy continues to recover. Moreover, fast-growing economies, like China and India, will continue to have a positive impact on resource prices.
Even so, the resource sector continues to be highly volatile, and investing in mining stocks has many hidden risks. In order to reap maximum profits—and avoid the pitfalls—you must know exactly which stocks to buy.
I’ve just written a new free special report to help you zero in on the mining stocks (including uranium stocks, metal stocks and junior mines) that are in the best position to take advantage of rising resource demand.
...
Sherritt International Corp., symbol S on Toronto, is a diversified natural-resource company that produces nickel, cobalt, thermal coal, oil and gas. It also licenses its own mining technologies to other metals companies, and manages 376 megawatts of power-generation capacity in Cuba. In the three months ended March 31, 2011, the Canadian mining stock’s earnings jumped 116.3%, to $63.6 million, or $0.22 a share. A year earlier, it earned $29.4 million, or $0.10 a share. Revenue rose 29.5%, to $474.5 million from $366.4 million a year earlier. Higher prices for nickel, coal and oil were the main reasons for the improved results....
Gold closed at an all-time high of $1,475.00 U.S. in Friday’s trading. It now trades at around $1,468, up 27.4% from a year ago. Gold’s recent gains have partly resulted from investor fears about the sovereign debt of European countries after Portugal requested a bailout from the European Union and International Monetary Fund. Investors are also worried about political turmoil in Libya and other Middle Eastern countries, as well as the possibility that today’s artificially low interest rates and governments injecting money into their economies will spur a huge rise in inflation. These fears are prompting more investors to buy gold and gold investments, because they believe investing in gold will provide them with additional security....
Japan’s reconstruction could prompt a further rise in copper prices. This new FREE report shows you how you can profit with less risk. Copper continues to attract a lot of investor attention. That’s because copper prices recently hit an all-time high of $4.62 U.S. a pound. That’s up sharply from a low of $1.25 U.S. in late 2008. Copper prices fell to around $4.10 U.S. a pound in the wake of the Japanese earthquake and tsunami, but have moved up since then. The dip in copper prices mainly reflects investor fears that copper demand will drop because the disaster has slowed Japanese industrial production. But that’s just temporary. As the reconstruction of Japan gets underway, the need for wiring, piping, and other copper-based products will be great. That could prompt a further rise in copper prices....
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