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Does the Average Investor Stand a Chance?

Last Sunday evening I started reflecting on all of the newsletters to which I subscribe.  I of course had a ‘gut’ feel of which one’s had recommended what, but I had never officially compared all 9 of the Services to which I subscribe.

Several of the newsletters to which I subscribe is because of my respect for their opinions and their current analysis of where the markets are and where they are going, not necessarily for their stock recommendations.

So, obviously being bored out of my mind on a Sunday evening, I set out to analyze all of the stock or indices recommendations of all 9 of my Services.  By the way, you would know all 9 of these Services immediately as they are some of the biggest, the best and respected in the industry.

My findings were very interesting to me.  There were a total of 271 different stocks or indices recommended.  Even I was shocked at this number.  Only 9 Services but a total of 271 recommendations, Wow!

Personally, I own about 100 different stocks; shares of mining and energy companies (uranium and oil & gas) including numerous long-term warrants.  Included in the 271 recommendations, I personally own ‘only’ 45.  I immediately wondered where in the world I got the information or courage to buy the other 55 companies in my portfolio.  Well, it is probably a long story as I am frequently a ‘gun-slinger’ with respect to some of my personal investments which I would never recommend to others, but which normally work out extremely well for me.  I am in a position to accept a larger risk (no wife, house paid for, no debt, no problems, well life is good, what can I say!)  I attempt to reduce my risk by diversifying into many different companies.

But back to the analysis;

Does the Average Investor Stand a Chance?

If you subscribe to these same 9 investment Services, what do you do?  How do you limit the recommendations to a reasonable number of stocks to purchase?   I am guessing here that the average investor may own a minimum of 10 and maximum of 20 stocks or warrants.  So, if you only followed the individual recommendations of these 9 Services, you would have to eliminate approximately 250 of their recommendations.  Quite a task!

What I did next was to look at those specific companies which were recommended by more than one newsletter.  As you might guess, Goldcorp was recommended by 6 of the 9 newsletters.

The analysis reflects the following:

                                                      # Analysts Recommending

    1 company (Goldcorp)                        6

    3 companies                                       5

    2 companies                                       4

  10 companies                                       3

  39 companies                                       2

 216 companies                                      1

 271 Total Recommendations

If you subscribe to all 9 of these Services, you could limit your investments to those 16 companies which were recommended by 3 or more analysts or perhaps consider call options, LEAPS or long-term warrants on those recommendations.

Unfortunately, the remaining 255 recommendations which have only 1 or 2 analysts recommending the stocks or indices will require one heck of a lot of work on your part or pure faith in the newsletters.  

Does the Average Investor Stand a Chance? Definitely!  In my opinion, all investors should be prepared to participate in the decision process of which specific stocks, indices, warrants, etc to purchase.  Those investors spending the time and additional analysis will be richly rewarded as this bull market in the precious metals and energy sector surges forward.

Patience, due diligence and timing our entry points, we confidently believe, will lead investors to incredible gains in the coming months.

July 27, 2006
Dudley Baker
Email:  info@preciousmetalswarrants.com
Website: PreciousMetalsWarrants

Dudley Baker is the owner/editor of Precious Metals Warrants, a market data service which provides you with the details on all mining & energy companies with warrants trading on the U. S. and Canadian Exchanges. As new warrants are listed for trading we alert you via an e-mail blast. You are provided with links to the companies’ websites, links to quotes and charts, tips for placing orders and much, much more. We do not make any specific recommendations in our service. We do the work for you and provide you with the knowledge, trading tips and the confidence in placing your orders.

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Disclosure/Disclaimer Statement

PreciousMetalsWarrants.com is not an investment advisor and any reference to specific securities does not constitute a recommendation thereof.  Neither the information, nor the opinions expressed should be construed as a solicitation to buy any securities mentioned in this Service.  Examples given are only intended to make investors aware of the potential rewards of investing in Warrants.  Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions involving stocks or Warrants.