Two recent stock picks reviewed
January 7, 2008
Greetings investors!
I want to spend a little time talking about my stock buys from the last half of ‘07.
Last spring we picked Ivanhoe Mines (IVN.Amex, IVN.TSX), and reiterated that buy when it hit $13 in early October. The stock travelled to $15 1/2 twice over the following three weeks, but no higher.
At the time I said I believed it would retest its earlier high of $18 per share before the new year, but that hasn’t happened obviously. Instead the stock went south, back to its current trading range of $11.
Some of you probably got out at +$15 and pocketed a quick 10% gain over 30 days. Those who held should keep their positions. I believe the current sell off in base metal stocks is temporary and due mostly to technical factors, rather than fundamentals. The world is currently mesmerized by sky rocketing prices for gold and other precious metals.
A couple of my favorite Canadian nickel plays have sold off sharply in the weeks leading up to the year end: First Nickel Ltd. (FNI.TSX) and Crowflight Minerals Ltd. (CML.TSX-V). Both of these are trading at valuations of above or below half their six month highs.
I’m more bullish on Crowflight over the short term because the company is still moving towards ‘producer’ status. First Nickel on the other hand is a new producer, and is currently experiencing all the delays and difficulties of any troublesome ‘first year’ of production. I continue to hold them both.
With respect to gold, I’m more inclined to be a seller than a buyer at current prices. I plan to trim my exposure back to 10% of the portfolio in the days to come.
For detailed and timely buy/sell calls subscribe to The BarkerLetter!
Careful out there.
The BarkerLetter on January 7th 2008 in Commodity investing
