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« BE BOLD: Buy and Hold Gold | Main | What if Gold’s current trend continues over the next 5 years? »
Sunday
Jul302006

Portfolio Update 30 July 2006

We have now recommended eight stocks since June, so we are slowly building our position in the precious metals market. All of our analysis, ideas, predictions, thoughts, worries and actions are published on this site for all to see.

There are some commentators who are of the opinion that free information is worthless. This opinion assumes that cost equals value. It does not. It never has and never will. We as investors are constantly looking for under valued investments where the cost is less than the value we hope to obtain.

1. Agnico Eagle (AEM) we paid $30.88 and it now stands at $35.69, a rise of 15.58%, which represents terrific progress. It was interesting to observe how this stock was traded as it announced record quarterly earnings. Agnico rose, as the news release time got closer and then dropped about $1.50 when the news hit the wires. The old adage of ‘buy the rumour and sell the news’ was clearly demonstrated. However, come the next morning it looks like those same investors caught the jitters and bought back into Agnico as the stock price moved north once again. There is the opportunity to trade this gold mining stock on a short-term basis and we may suggest such strategies later on. But for now our strategy is to get into position before the next rally. Some eminent analysts are advising that we should wait until closer to the end of August for better gold prices and they may be correct. We however believe that we should be in this market now as the next move may catch us on the wrong side of the line.

Anyway what’s wrong with a 15% increase since the end of June?

2. Bema Corp (BGO) paid $4.56 and it now stands at $5.64, a rise of 23.68%, another terrific advance. Our investment is looking good with this mining stock and set to go further as gold prices improve.

3. Cambior (CBJ) we paid $2.61 and this stock closed at $3.02, a rise of 15.71%, this investment could turn out to be the pick of the bunch. It looked a little slow to start, but on Friday it gained 11.03% in a single day. This demonstrates to us the thinness of the gold mining sector. As savvy investors seek to protect their wealth by moving small percentages of their funds into gold stocks their demand forces up prices dramatically. If you are not into drama then don’t follow us.

4. Kinross (KGC) we acquired at $10.08 and this stock now stands at $11.54, a rise of 14.48%, was our leader, but now it has been overtaken, not to worry still a handsome gain.

5. Silverado (SLGLF) we bought at $0.08 and it now stands at $0.064 a fall of 20.0%. Back to planet earth with a bump. Silverado could languish here for a short time. However with a small amount of good news coming from the Nolan Heights project it could move up again very quickly. The green fuel side of the business could also do with a boost in terms of news, say about possible government grants, etc. We will have to sit on our hands for the moment.


6. US Gold Corp (USGL) we bought at $8.40 and it now stock stands at $8.00 a fall 4.76%, having experienced considerable volatility. We are still happy to hold and have every confidence in Rob McEwen, the company Chairman.

7. Hecla Mining (HL) we paid $5.27 on 05 July 2006 and it now stands at $5.35 an increase of 1.52%. Nothing else to say.

8. Taseko Mines Limited (TGB) we paid $2.78 for this mining company and it closed at $2.68, a fall of 3.6%. We will stick with this one as with all of the above.

If we placed an equal amount of money into each of these mining stocks then the overall gain is 5.31%.

Generally, we are really pleased with the current performance of our selection of eight mining stocks. Our philosophy is to be bold and buy and hold. If we have done our homework correctly and the fundamentals have not changed then there is no reason to run for the door.

We are confident that our approach will pay dividends and even if you do not buy any of the above make sure that you have some gold mining shares in your portfolio and enjoy the ride.

We welcome you to observe our portfolios performance and please do make comparisons between us and your current hero’s stock picks. Our knowledge is shared with you for free please enjoy it in a relaxed and calm manner.

Always discuss your investments with your regulated financial advisor before putting your hard earned money on the table.

30 July 2006

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