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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BHP’s revenue in its 2020 fiscal year, ended June 30, 2020, fell 3.1%, to $42.83 billion from $44.29 billion in 2019....
Long-time readers know that we continually evaluate the stocks we recommend to see if they should remain in thePower Growth Investor newsletter. Here’s a look at two we now see as sells.
CAMECO CORP. $14.00, is a sell. The company (Toronto symbol CCO; TSINetwork Rating: Extra Risk) (www.cameco.com; Shares outstanding: 395.8 million; Market cap: $5.5 billion; Dividend yield: 0.6%) is the world’s biggest uranium producer.
Uranium prices—and Cameco’s share price—have moved up lately, despite the COVID-19 economic and stock market downturn....
ALAMOS GOLD $13.71, is a buy. Through the shares (Toronto symbol AGI; TSINetwork Rating: Speculative) (www.alamosgold.com; Shares o/s: 390.7 million; Market cap: $5.4 billion; Divd....
MCKESSON CORP. $156 is a buy for aggressive investors. The company (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares o/s: 191.8 million; Market cap: $29.9 billion; Price-to-sales ratio: 0.1; Dividend yield 1.1%; TSINetwork Rating: Above Average; www.mckesson.com) is the largest wholesale drug distributor in the U.S....
The company’s shares continue to rise along with silver prices....