Portfolio Update: What Should I Buy? (January 14, 2016)

bear - 1

The bear is out in full force this week! Mining stocks are getting smashed into oblivion, and I’ve got buddies who are now refusing to look at their portfolios!

Yes, I want to conserve some more cash, but I’ve got just enough spare change remaining from my last sale (BAR.TO and FF.V) to make a small purchase today.

Everywhere I look, I’m seeing bargains…

For anyone actively following the mining sector, what’s on your radar?

What would you buy today?

Here’ what I’m eyeing:

  • B2Gold (BTG) @ $0.80/share
  • Endeavour Silver (EXK) @ $1.12/share
  • Ivanhoe Mines (IVN.TO) @ C$0.57/share
  • Teranga Gold (TGZ.TO) @ C$0.455/share

Quite honestly, all these stocks look cheap to me… If my funds were unlimited and I didn’t think things might still potentially get worse, I would buy them all!

With BTG, there are concerns with an upcoming financing event, which probably explains the most recent sell-off…

EDR released production results that the market didn’t interpret favorably, with silver production declining 14% in Q4 2015. They are also not the lowest cost silver producer, so there have been (and there still are) concerns about the company’s ability to continue to weather this nasty bear market storm… Still, I like the management team (led by Bradford Cooke) and believe that they will ultimately be a survivor.

IVN.TO has world-class assets, no doubt, but with copper/platinum/palladium/zinc/etc. crashing HARD, it just really doesn’t matter right now… Currently, the consensus is that base metals will continue to nosedive into 2016, so I guess the question is, “What’s the rush to get in now?” Further, the final batch of escrowed shares will be released on January 23, so until that dust settles, everyone is speculating that the selling pressure will remain fierce for the near future… I really like this company, long-term, because you get to purchase a call option on not only copper/zinc, but also on platinum and palladium (should fuel cell technology ever take off)… The recent completed financing with Zijin Mining gives me reassurance that these mines will someday get built! I guess the dark clouds hovering over this company will always be South Africa and Congo…

TGZ.TO is a low-cost gold producer ($964 AISC) operating out of Senegal… With this company, you’re getting 200,000 oz/year production, strong cash balance ($55.1 million), minimal debt (recent revolver drawdown of $15 million), reasonably safe jurisdiction, etc… Most investors prefer Endeavour Mining (EDV.TO), but that stock has run up quite a bit in recent months… and I’ve already got enough Burkina Faso plays in motion…

 

What would you buy? And are you buying?

 

I’m leaning towards TGZ.TO.

 

Most of my friends who are playing in this space are electing, instead, to close their eyes and hope for things to get better soon… It’s tough to stomach this much pain!

 

It’s been an absolutely devastating week so far for mining stocks, but I remain steadfast in my belief that I’m doing the right thing; I like to buy low even if the popular narrative is that the ship will just keep on sinking…

 

If it’s going down, I’m gonna go down right with it…

 

Happy Hunting!

Print Friendly, PDF & Email
Sharing is Caring:

23
Leave a Reply

avatar
10 Comment authors
Mining Stocks – Rules of the GameLithium – A Most Hated Sector (August 16, 2016)Setting Goals… What’s That? (July 29, 2016)Sell Your Losers and Move OnPortfolio Update: Adding Shares of Perseus Mining (April 08, 2016) Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
joe
Guest
joe

I would buy an index fun 🙂 tax, cost, and capital gains efficiency and you will beat nearly 90% of other investors over the long term.. it is an easy ticket to make more in the long term than almost everyone you know.

Reepekg
Guest
Reepekg

I’m closing my eyes and hoping for things to get worse…

I’m looking to initiate my first ever gold position (in GDX), but it is a deflationary dilemma. What’s the rush to get in now, indeed. As I commented 11/24, I’m still not fashionably late for this party. I’ll reevaluate around March.

It has been a lot of fun and quite exciting to watch your story. My greatest strengths, however, remain patience and an investment horizon of forever.

mike
Guest
mike

ETF: DUST. lol im jk, giving you a hard time 😉

Ton
Guest
Ton

I’m so glad that I pretty much sold all my index funds out. Right now, I’m an options investor and focusing on volatility as an asset class with directional neutral assumption. With this increasing volatility environment, it’s an a dream and abundance opportunity for options investor to sell calls and puts against index ETF in believing that everything will revert back to the mean.

Quick question though, in some of the accounts that I couldn’t trade or it gets expensive to trade such as HSA. Do you think it’s a good idea to DCA on gold for entire fund. My HSA is relatively low compared to my total NW?

Sean
Guest
Sean

What do you think of lakeshore gold and eldorado at these levels.
Even without Greece I think ego looks pretty cheap.

beth
Guest
beth

I bought Crescent Point Energy yesterday. I had planned to buy it when it went under $15 and it went down to $13 yesterday. They reduced the size of their dividend last year but I am hopeful the dividend and stock price will rise in the future. This is a medium term hold for me. I think I will have it for 2 or 3 years.

Bank Of Nova Scotia is down and if I had any more cash I would be all over it too.

Srini
Guest
Srini

Jay,
I took a dip into Klondex , pretium, first majestic, Alexco, Kirkland lake. Have been aggressive from the start of 2016.

Now running low on dry powder in my trading acc and aligning funds to convert to USD & CAD for the next dip.

Sold a portion of FF @ .435 and looking to re- enter at early .3 and iam amazed by its strength in holding the gains
All the best.

Jason
Guest
Jason

I love reading your site. I picked up 6000 shares of B2Gold @ $0.80/share today. I am trying to add, on the drops.

DivHut
Guest

I’m liking the Canadian banks a lot these days. TD, BNS and RY. They have fallen on some really hard times and are sporting some compelling prices value and yields. These are the times to buy when seemingly everyone else is selling. Thanks for sharing your considerations.

trackback

[…] So, over the last 6 months or so, I was aggressively adding to core positions in my portfolio. Again and again. For the most part, I’m done buying, but I still follow the sector […]

trackback

[…] might recall, I was pounding the table, totally convinced that the gold mining shares were the bargain of a lifetime during the month of the January firesale. I likened myself as being, “A kid in the […]

trackback

[…] year and up until about February of this year, when I was loading up on gold and silver miners, it’s precisely because those stocks were trading at historically low […]

trackback

[…] Portfolio Update: What Should I Buy? (January 14, 2015) […]

trackback

[…] Portfolio Update: What Should I Buy? (January 14, 2016) […]

Close Menu