-- Posted Tuesday, 9 November 2010 | | Source: GoldSeek.com
By Dudley Pierce Baker
As gold, silver and many commodities continue higher the shares of the penny stocks traded on the Toronto Venture Exchange are starting to explode.
Many investors have some of these penny stocks in their portfolio and some have probably been held for a long time and some have not recovered from the meltdown in 2008. We like to say the boat is starting to float and even the dogs and cats are beginning to rise.
Some would define a penny stock as one that is selling for less than $5.00. Frankly, we would define a penny share as shares selling for $1.00 or less. Traditional investors watching CNBC would think it insane to purchase penny stocks but if investors do their homework they can still find some excellent values. Your selection process should always include the quality of management, location of properties, insider buying or selling, etc. This is not that difficult but does take some time to accumulate this information.
To get a handle on how penny stocks are performing we like to look at the CDNX, the Venture Composite Index.
The first chart below shows that the Venture stocks are performing well and the second chart shows that we are still substantially below the highs reached in the first half of 2007.
The next chart shows Venture stocks outperforming the strong move in gold.
However, even with the strong move in the Venture stocks they are still lagging the HUI (Gold Bugs Index) and currently consolidating.
We are of the opinion this major move up will continue into the first of the year and investors still have time to capture some excellent gains.
We are being given the rare possibility of a once-in-a-lifetime-opportunity, what will you do with it?
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1. An online database for all warrants trading on the natural resource companies in the United States and Canada. Our database is the most comprehensive database that you will find.
2. In addition for our Gold Subscribers we provide:
A. "A Look Over My Shoulder" - This is my entire personal portfolio and I provide an audio update each Thursday evening and emails as I buy or sell securities or warrants. Each subscriber can decide whether to follow me but this is your decision and we suggest that subscribers do their own due diligence before buying any securities.
B. Insiders Trading Data:
We track the insider trading on the Canadian Securities and issue BUY and SELL Alerts as we deem necessary. We have a great track record of approximately 100% gains on all closed trades.
We encourage all readers to sign up for our free weekly email.
November 9, 2010
Dudley Pierce Baker
Guadalajara/Ajijic, Mexico
Email: support@preciousmetalswarrants.com
Website: PreciousMetalsWarrants
Dudley Pierce Baker is the owner and editor of Precious Metals Warrants. PreciousMetalsWarrants provides an online subscription database for all warrants trading on junior mining and natural resource companies in the United States and Canada and a free weekly newsletter.
Disclaimer/Disclosure Statement:
PreciousMetalsWarrants.com is an investment advisor and any reference to specific securities does not constitute a recommendation thereof. The opinions expressed herein are the express personal opinions of Dudley Baker. 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.
-- Posted Tuesday, 9 November 2010 | Digg This Article
| Source: GoldSeek.com
