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Chart 1: Smaller Half of our 55-Stock Index
The smaller half of the big 55 stock index has 26 companies. All but one or two are within a $50 Million to $250 Million market cap.
This index has held up quite well relative to GDXJ and relative to producers. But the index has been held up by its now declining 200-dma. It could pop up to 195 or even 205 but bear in mind it has 10% immediate downside to key support at 170.
Chart 2: John Hussman's 4 Criteria
John Hussman gets a bad rap from perma-bulls because he tends to be bearish quite often. This obviously angers the perma-bulls. Regardless of Hussman's bias and performance, his work is very detailed and well thought out. Just look at this chart which includes 4 criteria: overvalued, overbought,
overbullish and unfavorable internals. The track record of this appears very strong.
Late Saturday evening we published and sent a 32-page update to subscribers. In this update we reiterated our near-term bearish outlook due to the continued relative weakness in gold stocks and Silver as well as a sudden increase in bullish sentiment in Gold as Gold nears very strong resistance. We also noted the potential for a snap-back rally in the reflation theme, which is extremely oversold. That could pressure Gold in the short-term.
We also noted the importance of the Gold/Equities ratio which could be nearing a major move before the end of the year. A correction in the stock market could mean there are no more rate hikes (other than June) for the rest of the year. That would be a bullish catalyst for that ratio and gold stocks. However, a continued rise in the stock market with no further deterioration in economic stats, could lead to multiple rate hikes which would pressure precious metals for the rest of the
year.
This update included subscriber questions answered (p8-10) and updates on a handful of companies (p5-7). One company holds a district scale land package in a good jurisdiction. They are trading at a sub $50 Million market cap and we think they have 3-5Moz potential in 3 years. Another company has corrected recently but boasts strong potential for 3M oz Au by year end. It has under a $100M market cap. Another one has been hurt by the GDXJ rebalancing. We think the stock has 5-fold potential
in the next 2-years if Gold returns to $1800/oz. We noted one of our recent buys and favorites which reported good news recently. It remains extremely cheap and has 10-bagger potential. Finally, we noted a company very high on our watch list, which has a sub $15 Million enterprise value but has a joint venture with a major.
Consider a subscription today as we can help you get positioned in the junior companies with significant upside potential at reasonable entry points. This is exactly our plan in the months ahead. We discuss and cover what we are actually buying, unlike the majority of our competitors.
Dr. Jeffrey Kern, who we recently interviewed, had this to say regarding our stock-picking abilities:
I am simply a pure market-timer for a broad basket of gold stocks and precious metals. Jordan, on the other hand, has provided superior STOCK-PICKING abilities over the longer-term. I am familiar with most gold stock subscription services over the past 30 years. I rarely provide endorsements of any kind, but Jordan's ability to analyze individual gold/silver stocks has been among the top 5 services over the past decade. First and foremost, I respect his
integrity.
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And these are just a few examples of subscribers' praise......
Your doing an excellent job with your research and your reports! Timely, precise and damn accurate.
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I have been a subscriber for nearly 2 years now, and just wanted to let you know how much I appreciate the work you do. I always look forward to your weekly reports and find the analysis you present to be outstanding.
In my experience (over 30 years in PM’s), your service is one of great value and high integrity.
Thanks for all your great work - charts and analysis is the best there is.
Your service is truly a gem among this industry. I've subscribed to several services over the past year and a half, and I wish I had landed on your site first.
I'm a new member - just want to say how much I appreciate your expert advice but mostly, your direct, honest and zero bullshit approach.
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We seek to own the companies with the best fundamentals that have the best risk/reward potential. We want to own the leaders while avoiding laggards with limited potential.
We tell you what we are buying and selling. Hence, we are completely transparent.
Consider a subscription today as you will receive all of our recent company reports and updates within several hours of your signup, as well as everything we produce for the next 6 months. You pay up front but get significant value up front (in a welcome email). Our goal is to help subscribers make
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Weekly updates are sent on Saturdays while flash updates are sent when we make a trade. Reports are sent sporadically. Upon signup you receive all recent reports and updates. Unlike most other editors, we answer subscriber questions.
Thanks for reading. I wish you all great health and prosperity.
-Jordan
Disclaimer: This newsletter is intended for informational and educational purposes only and should not be considered
personalized and individualized investment advice. Investment in the precious metals sector contains significant risks. You should consult with an investment advisor and do your own due diligence before making any investment decisions. This email may contain certain forward looking statements which are subject to risks, uncertainties and a multitude of factors that can cause results and outcomes to differ materially from those discussed herein.
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