Editor's Note: Here's a brief look into the content JMM subscribers received earlier this month. With the summer season here, I thought I would give you a glimpse at the kind of insight my premium newsletter offers during the summer doldrums.
Summertime is always bittersweet.
There's nothing like hot Austin days, time with family, and my annual pilgrimage to Chicago - Go Cubs.
It's bittersweet because this is a tough junior resource market and a little selling in the summer can translate to 15-20% moves lower in stock prices.
What to do? I'll share what I'm doing. Buying.
In the past several months, I've bought more junior stocks than in the past seven years.
Trade wars and a strong dollar are going to send commodities lower in the interim and it's summertime, which means lower share prices.
None of this should be new to JMM subscribers, as earlier in the year (January) I outlined what I expected. Here's a brief snippet.
"Expect a weak dollar for another quarter or two and then expect a rally.
"Lastly, don't underestimate the potential for an international crisis that sends capital rushing right back into the U.S.
"Anyone remember what volatility in the markets is like?"
Stronger dollar, volatility, lower gold price, and a busy year in the uranium space are all things I explained in January.
I also explained that there would be important drill programs for several JMM portfolio companies.
We should have initial results from Willow (Abacus) soon.
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I don't need a home run in the first two or three holes, but I do need to see that the system being drilled is mineralized and that the team at Abacus is vectoring in towards a porphyry.
Kinsley Mountain (Nevada Sunrise) results are due any day now. That project is more advanced and though Nevada Sunrise only owns 21%, good results there could lead to an expanded drill program, and that will lead to a higher share price.
Gainey has been a major disappointment. Drilling has yet to materialize at the El Colomo district. I've been told directly by CEO David Gainey that the delay is due to the company putting the finishing touches on an important part of the land package it currently does not own.
I'll continue to wait, but Gainey is definitely on the clock. It was bought because of the potential at El Colomo. If management is unwilling or unable to get drills turning this year - which is the premise it raised money under - I'll sell it and take the loss.
One last point and one I've made before. It's important to not confuse share price with value, especially over the summer.
Judge companies by the work they're doing, not share price, because eventually - with a little luck - that hard work translates to higher prices.
The recent M&A and premiums paid - sometimes for marginal assets - demonstrate the huge disconnect between price and value.
That won't last forever.
To your wealth,
Gerardo Del RealEditor, Junior Mining Monthly and Junior Mining Trader.
For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Outsider Club, Junior Mining Monthly, and Junior Mining Trader. For more about Gerardo, check out his editor page.