Is Your Stock
Portfolio Under
Water?
Let’s be honest,
these are very
challenging
times to be an
investor.
Regardless of
all of the
positive spin
from CNBC and
from many
newsletter
writers and
analysts this
has not been the
best of times to
be ‘in the
game’.
For those of us
who are ‘in the
game’ the
question now is
what do you
do? How
do you proceed
today? How
can you limit
your risk
going forward?
Virtually every
investor took it
on the chin last
September -
October. That
includes me as
well but I have
approached this
setback in my
portfolio as an
ideal time to
take advantage
of the numerous
opportunities
that my service
database has
identified and,
as such, have
experienced
numerous
successes
recently.
Yes, I put my
money where my
mouth is.
What do you
do?
I suggest that
you evaluate
your current
stock portfolio
to determine if
there are any
stocks that
should be sold
which would
allow you to
re-invest the
monies in
opportunities
with more
potential?
In my case, I
have many small
positions which
are selling for
only pennies per
shares. If I
sold them I
would receive
almost nothing
and of course,
we still have to
pay commissions;
therefore, I
have chosen to
hold my
positions in
these companies.
If these
companies are
able to survive,
I am ‘hopeful’
the
share/warrant
prices will
increase with
the markets in
the next year or
so and I will be
rewarded for
holding my
positions. If
I sell these
positions, the
game is over.
I will have
taken a major
loss with no
chance of a
recovery and I
will have
received very
little cash had
I sold these
positions to
re-invest. I am
very comfortable
taking this
position, but
you must make
this decision
for yourself.
How do you
proceed today?
Each investor
must have an
opinion on the
overall trend of
the market. I am
now speaking
specifically
about the
precious metals
sector, gold and
silver.
I am more
confident than
ever that we as
investors are on
the right track
by investing in
gold, silver,
the junior
mining sector
and specific
long-term
warrants.
This confidence
allows me to be
patient and
still sleep well
at night. Sure I
would have loved
to have been
rich yesterday,
but my patience
will get me
there.
You must decide
for yourself,
not relying on
me or any other
analyst or
newsletter
writer, your own
level of
confidence in
the markets.
Remember, the
markets usually
do everything
possible to
trick and
deceive
investors,
throwing them
off the horse
before the big
rise. Many times
investors sell
out early out of
frustration and
thus are not ‘in
the game’ at the
time of the big
up move.
This is not easy
folks, but you
must have strong
beliefs that
we/you are on
the right path.
If you have
additional
monies to invest
today, you
should
consider
averaging down
on some of your
favorite
positions and/or
entering new
positions
which have a
great
probability for
success.
How can you
limit you risk?
You can limit
your risk by
investing less.
This is not
meant to be a
wise-ass answer
so listen up.
Strange as it
may sound to
you, using
long-term
warrants or
perhaps LEAPS
can limit your
risk exposure to
the markets.
In a very simple
illustration,
let’s take
Agnico-Eagle
which closed
Friday at
C$49.00. They
have a long-term
warrant which
closed at
$19.50. This
warrant has over
4 years of
remaining life
and will greatly
outperform the
common shares if
our rally
unfolds in the
coming months
and years.
In effect,
we/you have
taken a position
in AEM for only
40% of the cash
outlay as
opposed to
buying the
common shares
and our
potential gains
will be much
greater. You
have thus
greatly limited
your risk my
investing a
smaller amount
of monies.
One
cautionary note:
the warrants are
thinly traded
and you must use
limit orders in
the placement of
your trades.
In our service,
in addition to
our warrant
database, we
also have a
separate table
of all of the
natural
resources
companies with
Options and
LEAPS - a
valuable
resource for all
investors.
Our current
market view
Even though gold
and silver have
been hit hard
over the last
few weeks we
believe the
longer term
uptrend is still
intact. There is
a good
probability we
will see higher
prices in the
coming days and
weeks. But we
need gold to
break thru
$1,000 to really
get this party
going again. A
solid break of
$1,000 will
attract new
investors around
the world and
then it will be
‘game on’.
To Summarize
These are
challenging
times and while
we may not have
all of the
answers we
strongly believe
in our current
positions and
have the
patience to ride
out our
convictions and
for numerous
reasons (another
future article)
we see a top
between
January 2011 and
January 2012
in the precious
metals sector.
Can you hang
in that long?
That is a
question only
you can answer.
For those
readers and
subscribers
unfamiliar with
all of our
services:
•
PreciousMetalsWarrants.com
provides an
online database
for all warrants
trading on the
natural resource
companies in the
United States
and Canada.
•
InsidersInsights.com
tracks the
buying and
selling of
corporate
insiders with a
focus on the
junior mining
and natural
resource
sectors. Buy and
Sell Alerts are
issued as deemed
relevant based
upon our
analysis.
There are many
great
opportunities
presented in
each of these
services and we
encourage you to
get on board
with us soon.
Dudley
-------------
Regards from the
team,
Dudley Baker,
Owner/Editor,
Guadalajara/Ajijic,
Mexico
Lorimer Wilson,
Director of
Marketing,
Toronto, Canada
Bruce Ross,
Webmaster &
Administrative
Services, Mesa,
Arizona
www.PreciousMetalsWarrants.com
www.InsidersInsights.com
