Update on Stock Picks

It’s been awhile since the last update report. Partially because I’ve had a bunch of great shows I’ve been doing, but I’ve also been hammering away on a new project. The timing is right for a new update as I will drop coverage of some to make room for some new companies.

 

I also wanted to let folks know that my new project is a book, Smoke Signals Investing.

 

I’m ready to introduce it, as I’ve finished the full draft of the book, I will be working with my publisher over the next few weeks to finalize the editing. It is part biographical, as I write about how I came to learn about mining, economics and stocks. I discuss the lessons from my mentors that help me and will help readers learn to be their own stock picker.

 

Update on Outlook 2016

In the Outlook 2016 report, I opened with my calls for the US big cap market based on the S&P 500. I also discussed my call on the USD and gold, as well as a trading strategy during the opening. After those calls, I had a number of top gold picks that I felt where primed to outperform their peers as gold got more bullish.

 

I will use the same format in this report, discussing my picks and changes to the coverage of some of my picks, including why. The key reason is that I don’t want to cover too many companies in the reports and I need to make some room for new picks. In addition, the key reasons I started coverage of them has changed. So it is time to shake things up, the seasonal timing is in my favour for removing and adding new names.

 

I also wanted to use the same format so you could easily check up on me to make sure I covered things the way I say I did by watching the Outlook 2016 show.

 

 

Some Trends Friendlier Than Others

 

In the Outlook 2016 report, I opened with a discussion about the S&P 500. It’s a good representation of the largest stocks in the US and I often look at it as an indicator of the US economy. Then I discussed the USD as commodities are priced and traded worldwide in American dollars. The direction of the USD has a significant impact on the prices of commodities. Then I spoke about my call on gold, making the case for why it will be the best performing asset his year. The first half of the year confirmed what I was expecting in the Outlook 2016 report and gold is in great shape to move higher.

 

After discussing US stock trends, USD and gold, then I mentioned strategies for active or less active traders, then presented a strong group of stock picks.

 

I’ll start the trends discussion with US stocks.

 

The Big Cap US Stock Market

 

I prefer watching the S&P 500 over the DJIA because it is a much broader index of stocks, including the largest 500 American public companies. This group of companies not only gives insights into the US economy, it also speaks volumes about the global economy.

 

In the Outlook 2016 report, I presented my argument for being bearish and expecting a major correction in the 20% range this year. I saw a very bearish January Barometer ranking which is often a good indicator of what is coming for the year. It was actually one of the worst starts to the year ever for the largest US stocks.

 

We have seen one correction of 10% so far this year, but then it recovered and yet the key reasons for my bearish outlook are still in place.

 

I was so bearish because the US stock market had historically high valuations whether looking at trailing or forward earnings. Plus, I was seeing a slowing trend in corporate earnings that looked to get worse, which they have. Just like at the beginning of the year, US stocks are priced for perfection and delivering poor earnings.

 

In reality, low single digit earnings growth is looking optimistic and is likely to get worse. It is very risky for investors to be owning US big cap stocks while they are priced for perfection and delivering crummy earnings growth.

 

I’m more bearish on US stocks now than I was at the beginning of the year because we are back up to record stock valuations and the earnings growth is slowing more than expected.

 

 

King Dollar Not So Kingly

 

They often say that a currency is like the stock for the country. When the economy is strong, the currency is usually strong as well. I made a bearish call on the USD in the Outlook 2016 report, and it has delivered.

 

The USD hit the year high in early December at a little over 100 on the USD index. Since then it has entered a classic bearish trend that has been very good for the price of gold.

 

At 100 for the USD index, it looked very stretched to me as it had run the course of it being a fear trade parking spot. With $19 trillion in national debt and no chance for interest rate hikes, with that much debt it is an easy argument to make that the Fed can’t let rates go up. Maybe ever.

 

The market had priced in the Fed normalizing rates, since the beginning of the year the currency traders are trying to position themselves for the reality the Fed can’t support the currency by raising rates.

 

The data points they are looking for just aren’t there for them. They desperately need real economic growth. Despite herculean efforts to help with low interest rates the Fed has been useless at trying to spur real economic growth. At least the kind of growth that generates any kind of wage pressure that has been non-existent for decades.

 

It is becoming ever clearer since December 2015 that the USD is grossly overvalued and in a bear trend that has more legs.

 

King Dollar Wishes It Was Good as Gold

 

While the USD reached the yearly high in the first couple days of December 2015, gold was forming a bottom. Then in late December it turned up. A classic Santa Claus rally that often puts assets in a good trend for a solid January Barometer ranking.

 

I watch all major asset classes in the late part of the year looking for the ones that have a Santa Claus Rally followed by a strong start to January. When you get that one-two punch it indicates that big money is ready to put more money into that asset class.

 

Whenever the assets I watch get the Santa Claus rally they usually get the January Barometer confirmation with a strong start in the first five trading days of a new year.

 

While US stocks and USD had poor January Barometer rankings, gold has been a rock star and has easily outperformed all major asset classes. I never ignore the late part of the year and early part of the new year technical indicators as they are uncanny at being right.

 

I would never jump on anything for technical indicators alone. But looking at the fundamentals of supply and demand story it was just as bullish while the technical indicators were lining up.

 

Gold production head grades are in decline, exploration successes are in decline, discovery grades and resource grades are in decline industry wide, and the industry has to go into tougher countries to operate, and deeper, for lower grades. It is abundantly clear the supply chain is weak and will stay that way for many years. I would say easily over a decade.

 

While the supply chain is weak, demand from India and China are strong and keep getting stronger as they keep growing their economies. Those two countries have insatiable appetites for gold, it is central to their cultures.

 

In addition, it looks like some central bankers are on the buy side as well, and without a doubt demand is coming in big time from the gold exchange traded funds. As the bull market gains strength the ETFs will have to keep loading up and buy more gold.

 

In the Outlook 2016 report, I predicted that gold was creating a cup type formation and that we were seeing the start of the right side of the cup. I predicted after the cup, we would see some sideways action, followed by a breakout. Which is exactly what happened, I read the fundamentals of supply and demand and technical indicators and hit the nail on the head.

 

At that time, very few newsletter writers or brokerage house analysts were bullish on gold. It’s easy to confirm that bold statement, just watch the Outlook 2016 for my clear message, then go try to find anybody that was as bullish or got the trend as right. You will have a hard time.

 

With the bullish trend we have seen so far in 2016 for gold, I wouldn’t change anything about my bullish calls from the Outlook 2016 report. It has unfolded like I had hoped and is set up for a strong finish to the year.

 

The only thing that I would change is I was looking for gold to hit $1350-1400 by the end of the year and would up the range. I now expect to see gold get over $1400 this year.

 

 

Shifting Gears

 

After a few years of a vicious gold bear market that ended in December 2015, I recommended a strategy shift. During the bear market investors had gotten shell shocked, with what I was expecting for gold, I also felt a more bullish trading strategy would help get the point across.

 

For the aggressive investor, I recommended to take on a buy the dips and sell into the rallies strategy that really needs a bull market to make it work. We have seen some exceptional trading opportunities for aggressive traders this year.

 

My argument for this strategy was to use the profits to increase holdings on the dips to get progressively more aggressive. But using discipline to trade around positions to get more bullish.

For the less aggressive investors, I recommended a buy the dips and keep riding them strategy.

 

Both of these strategies are dependent on a bullish trend, and most importantly a strong shopping list of high quality picks. I’m always happy when I get the trends right, and I wouldn’t change anything about my main market calls, nor would I change the trading strategies I recommended in the Outlook 2016 report.

 

Before writing this report, I watched the Outlook 2016 report again, mainly because I wanted to make sure I got all the facts about my calls down right for this report.

 

While watching it, I was really pleased on how bang on I got things, and that I wouldn’t change my stance. My audience watches my work for two reasons, one for my calls on the market trends and stock picks.

 

As happy as I am about getting the trends right, I would put my shopping list of stocks up against anybody in the business.

 

 

Stock Updates

 

In the past, when I used to do more public speaking engagements, one of my favourite things was the question and answer periods. I know the organizers didn’t always like it because I would take over the room and start taking questions from all over the place. I loved it, kind of reminded me a little of back when I played a lot of sports as a teenager.

 

The thing I liked the most, was giving my quick points of the key attributes that catch my attention about a company, then talk about recent news and my opinion of what I see and what I see upcoming. I thought that is a great format for updating the companies I’m covering.

 

I’ll start with my sponsors, then stock picks from the Outlook 2016 report, two of my four sponsors were picks in the Outlook 2016 report before becoming a member of my website sponsorship program.

 

I’m going to be removing a few companies from the list to make way for a group of new picks. My whole bullish argument is that this new gold bull market that started in 2016 will see fewer companies participate. So, my goal was to follow fewer companies, but follow them closer.

The companies that are being removed have done well, it’s just that it is time to trim the roster of stocks I’m covering. To make way for new blood that is ready to outperform the ones I’m removing.

 

 

Website Sponsorship Program Members Updates

 

I’m lucky to have great sponsors, they all started as stocks I took a flyer on or picked in reports before they joined as sponsors. They make my work possible, I invite readers to visit their websites and do your homework on them, they are strong candidates for growth.

 

I only invite companies to join my website sponsorship program when I think that my audience would be interested, and that they pass my criteria as a stock I would invest in and recommend in my reports.

 

I’m very selective about the companies that I invite to join the program because the long term success of the program is dependant on the quality of the companies in the program.

 

Stay tuned, I’m working on some new sponsors to bring to you.

 

 

Premier Gold Mines (PG.T)

 

When I do my shows, I start with my sponsorship messages after introducing the guest and outline of what we will talk about. In them, I introduce the sponsor company and give a brief presentation, then mention their symbol and invite viewers to visit their website to do more homework.

 

With Premier Gold, I always say that they have an enviable portfolio of projects from exploration to production with great partners like Barrick, Centerra and Goldcorp. That sentence speaks volumes of what Premier Gold is all about.

 

I’ve been featuring Premier Gold in my reports for years at crucial times and they always deliver. I had Ewan Downie, President and CEO, on a show in the middle of December, just before gold took off. I was joking with Ewan in a follow up interview show that I’m calling it the Ewan Downie effect. He comes on a show and gold goes up.

 

After interviewing Premier Gold in December, I followed that up with picking them as a top gold stock pick in the Outlook 2016 report. Not long after that I launched my website sponsorship program and Premier Gold gave me a chance to showcase my program by having them as a member of the program.

 

I’m so happy to have them as a member of my website sponsorship program and as a pick in my reports because they have delivered better than I hoped.

 

During the start of the new gold bull, Premier Gold has significantly outperformed its peers due to the quality of its various projects and the exceptionally talented people running the company.

 

What has kept them ahead of their peers is a combination of things. Enviable portfolio of projects, well funded for all their exploration and development costs, so they have strong news flow.

 

The news flow has kept them on the minds of the investing community in gold stocks, and I’m happy I can keep their name in front of my audience as a member of my website sponsorship program.

 

 

West Red Lake Gold Mines (CSE: RLG)

 

I started coverage of West Red Lake Gold back on Mar. 7/16 because they had good news out from their high-grade gold project on the west side of Red Lake, Ontario. A week later, I had their executive Chairman Tom Meredith on a show and the next day they joined my website sponsorship program.

 

This all transpired quickly, mainly because Tom and I hit it off so well right away, and the drill results, but I think Tom was also impressed with my knowledge of his project.

 

The reason that I knew his project so well, is years before Tom joined West Red Lake Gold I had worked for a company that had the adjoining ground. The ground that the company I worked for shared an important geological structure that continued onto West Red Lake Gold’s ground.

 

The structure called Newman-Todd, was on the ground for the company I worked with, we must have drilled 80 holes into the structure while I worked for them. We hit gold on every hole but one, and a high percentage hit high-grade to bonanza grades. The biggest problem was that there wasn’t really a spot in the structure well prepared to host a significant deposit of gold.

 

This is where it gets exciting for West Red Lake Gold Mines. The Newman-Todd structure continues and goes up beside the old Rowan Lake mine, where it hits an east-west geological structure. Where they meet is called the Hinge Zone, where the rock is well prepared for gold to accumulate into a deposit.

 

I first saw that Hinge Zone on a geological map around 10 years ago, I wished that we had it on the ground of the company I was working with next door.

 

Since they joined as a sponsor, they were able to get the funding to drill and are currently drilling the Hinge Zone target area. I’ve been excited to see that target drilled for a decade or longer, and I’m pretty stoked to have a member of my website sponsorship program doing the drilling.

 

It is a classic Red Lake exploration story. On the east side of Red Lake where the big world-class gold mines are, you look for gold mines where you have gold mineralized geological structures from different direction meet. The Hinge Zone is one of those targets.

 

It is no wonder that Goldcorp is a 40% partner on the project with West Red Lake Gold holding 60%. Goldcorp knows what these kind of targets look like.

 

I was willing to start coverage and quickly invite them to become a sponsor due to my experience working with the company that had drilled a lot of holes into the Newman-Todd Structure. And having recognized the potential of the Hinge Zone years ago when I first saw it.

 

I have a lot of confidence in that target, I’m really happy that West Red Lake Gold has the funding to put some holes into the Hinge Zone. If it looks as good at depth, like it does in other spots along the structure, and how it looks at surface, then we will be in great shape.

 

 

Wolfden Resources (WLF.V)

 

Back in late October 2015, Wolfden announced a batch of drill holes from their 100% owned project near Snow Lake, Manitoba when I started coverage. They had hit high-grade nickel-copper in an area well known for big base metal mines.

 

Since then, they have been able to raise funds to cover additional drilling and have continued to hit high-grade nickel-copper and also started assaying for cobalt and getting that as a kicker as well.

 

I picked Wolfden again in the Outlook 2016 report as my only pick that wasn’t a gold stock. They were also on the lowest end of the valuations of my picks.

 

Not long after the Outlook 2016 report, I launched my new website sponsorship program. Wolfden was the first company to take me up on the offer. They are the key kind of company for my program, they have a really good project, and a strong team, that could use some help with a new audience.

 

I’m really happy to have picked Wolfden off their earliest discovery holes and then they would go on to join my program. No matter the size of any company that I follow in my reports, invest in, or invite to become a sponsor of my website, it always starts with the drilling story.

 

They have hit a lot of high-grade nickel-copper-cobalt with the truth machine. Each time they do more drilling they get a better understanding of the geophysical anomaly. The anomaly is large, and they are looking for traps where the nickel-copper-cobalt can accumulate into a significant deposit.

 

They are refining their targets and I’m looking forward to future work to target in on the large anomaly for the traps of high-grade nickel-copper-cobalt. Targets like this don’t come along very often, I’m glad to have them on board so we have a front row seat to watch this project move forward.

 

 

Sirios Resources (SOI.V)

 

Often the best situations in the markets for me have sort of fallen into my lap. There is nothing like when timing is right, and with Sirios, things fell into place better than I had expected.

 

Not long before making news of an impressive discovery hole with high-grade gold in discovery hole #52. I had John Kaiser on a couple shows and he brought the company up, I asked him tons of questions. It really caught my attention.

 

He had presented the exploration story, and what he was hoping to see and they ended up delivering. The day after they announced their big news, I had one of my mentors Andre Gaumond on a show.

 

What made the timing of this interview so timely is that the Cheechoo gold project where Sirios made their discovery is right beside the Eleanore gold mine in Quebec. The Eleanore gold mine was found by the team at Virginia Gold lead by Andre Gaumond. If anybody knows the geology of this region it is Andre.

 

I wish I was smart enough to be able to plan things like this but it really was by chance that things came together like this. I got to ask Andre if he had seen the results, he enthusiastically told me he had and the viewers about what had impressed him with the news.

 

It didn’t take me long to put everything together, and despite them seeing a better valuation, I was still able to start coverage when they had a much lower valuation.

 

Timing is everything in most things in life, the exploration theory, drilling, experts all lined up great for Sirios. I was really happy they took me up on the offer to join my website sponsorship program, as they have one of the most exciting gold exploration stories in Canada.

 

To make matters even better, it is in Quebec, the best jurisdiction in the world for gold mining, and it is right beside one of Quebec’s best gold mines.

 

In addition to an improved valuation, they have been able to properly fund themselves from high profile groups including the company that Andre Gaumond is involved with running. We are in good company on this one.

 

I’ve only ever featured two gold companies in Quebec, Osisko and Virginia, I picked them early and often and they both went on to remarkable success. Sirios is shaping up to become my next big Quebec gold pick, and they are a member of my website sponsorship program so we have great seats for this show.

 

 

Updates on Remaining Picks from Outlook 2016 Report

 

As mentioned earlier, two of my picks from the Outlook 2016 report have become members of my website sponsorship program. Premier Gold Mines and Wolfden Resources were picks from the Outlook 2016 report and you can find updates in the program members section.

 

 

Dalradian Resources (DNA.T)

 

Dalradian was one of my top gold picks included in my Outlook 2016 report, they were $0.73 when I picked them and since then have traded as high as $1.32. Today, they closed at $1.02, and I’m ready to drop them from coverage, as I need to make room for new picks that I feel can outperform them.

 

I started coverage because of the high-grade gold discovery, and that smart money investors like Ross Beatty were in at higher prices. I felt as gold got stronger, Dalradian would as well. But there is a reason why gold is trading at the highs of the year and DNA isn’t.

 

Even before the Brits decided to leave the EU, Dalradian had some political problems. There has been some opposition from local politicians. I don’t see this becoming a long term issue, they need jobs in the area and a mine will bring tons of jobs and investment.

 

With the political headwinds of some local opposition, and a bigger headwind from the ramifications in Europe after Brexit. These are variables that I no longer want to deal with as a pick.

 

We’ve seen good performance from this pick, but I’m jumping ship because there are other picks I need room to add.

 

 

Pretium Resources (PVG.T)

 

Pretium has been a remarkable pick from the Outlook 2016 report when they were trading at $5.06 and have since tripled in price with a closing price of $15.17 today. While moving like that they secured additional funding to build their exceptionally high-grade gold mine and are moving closer to bringing it into production.

 

After such an impressive move, I’m ready to recommend that those sitting on big gains sell half their position. By doing this, you will take all your investment capital off the table and take some profits. This will leave you with half your position to keep enjoying the ride without needing to worry about losing any of your initial investment. You will be playing with Mr. Markets money.

 

Despite changing to a sell half of position call for my audience that are in early, I will be continuing coverage. When they bring this mine into production, they will become a large producer really quickly.

They are run by Rob

ert Quartermain, he has had an exemplary career of finding and building mines. This is his biggest mountain to climb, in more ways than one as the project is up in a mountain in the Golden Triangle region of Northwestern British Columbia.

 

I live close to Vancouver; this is a mine that I hope to visit in the not too distant future. It is in my home province and they have a strong relationship with the local indigenous groups. I’m excited about the potential of it creating a lot of jobs for the youth up there, they need opportunities.

Pretium has already created lots of jobs for the local indigenous youth and have been a great pick that I expect to be covering for years into the future as a core holding gold pick.

 

 

Sabina Gold & Silver Corp. (SBB.T)

 

I started coverage of Sabina back in mid-November 2015, when I had Bruce McLeod on for an interview when they were trading at $0.63. I then picked them in the Outlook 2016 report and they had the same share price of $0.63 that day. In the April 2016 update report, the stock was $1.63 when I made a take profit recommendation and I’m ready to drop them from coverage.

 

Originally, I had picked them because I felt the market was valuing the company too cheaply based on what they had already found and had at advanced stages. In addition, I felt they had exploration potential that would help unlock value in the stronger market for gold I was expecting.

 

The main reason that I recommended profit taking was because a newsletter writer known for bringing in hot money had got the valuation up to a price where good drill holes were priced in. Well before the drilling even happened.

 

The timing would turn out to be on the money, for a reason I didn’t see coming. They dropped the ball at their public hearings with the Inuit up in Nunavut. After the public hearings they received a recommendation for the project not to proceed at this time, by the Nunavut Impact Review Board (NIRB). With the recommendation moving on to the Federal Minister in charge of issuing development permits.

 

I’ve worked for companies in the NWT and Nunavut and I’m acutely aware of the importance of public hearings concerning permits. So I was watching the reports of developments at the public hearings closely. They are a pick, and as a First Nations mining entrepreneur that has provided community relationship building services, these issues are really important to me.

 

I had read posts that there were several questions from the elders concerning the caribou. They specifically wanted to know if Sabina would make a commitment to shut down the roads and mine, in the event that the herd came through during crucial times of the year.

 

Sabina didn’t come up with the right answer, which was that they would research it thoroughly and if it was determined that it was required they would shut things down.

 

I was concerned because I know that elders in indigenous communities only ask questions if they have significant concerns, and if they do, it is best to deal with them as directly as possible. No matter what the issue is, but in a place where a certain herd of caribou is down 95% in population it becomes imperative.

 

But after they had got the green light from the Kitikmeot Inuit Association, it looked like they would be allowed to move forward.

 

When word came out that they got the recommendation from the NIRB, I knew exactly what the problem was. They should have committed to shutting down the mine and road if the caribou came through and it was found that was the best solution.

 

Now they are going to face a 1 to 2-year delay, it will take several months for the Federal Minister to rule, then they will have to come up with a revised plan and go through the whole process again. They will then have to hope that the revised plan will get accepted. I will be very surprised if the revised plan doesn’t include a plan to shut down the road and mine in the event that caribou come through.

 

In the long haul, they have a pretty good chance of fixing the mistake they made when they dropped the ball at the public hearings. But with a 1 to 2-year delay. I’m not willing to keep them on as a pick.

 

I’m dropping coverage of Sabina to make room for picks I think are better positioned to get a higher valuation.

 

 

Yamana Gold (YRI.T)

 

When I put Yamana in as a top pick, it was the second time I got to step up and listen to the Yamana Barometer and they delivered. On the day of the Outlook 2016 report they closed at $2.64 and closed today at $7.40. The company has been an excellent performer, but I’m ready to recommend selling half for those sitting on big gains.

 

This is another one that recommending a sell half call is because I want to make room for new picks and it will also allow my audience to build up some cash for the new picks.

Although I feel it is time to trim on this name, I won’t be dropping them from coverage. They are still a top gold pick, for those looking for candidates to buy they are a great one to look at on any weakness.

 

Yamana has their hands in a lot of top quality gold mines, they are well run, but whenever gold miners are being hit, they seem to get undue punishment. It happened after the 2008 global economic collapse, when I picked them the first time. It also happened during the last gold bear market when they got really cheap in late 2015.

 

One of the nice things about when Yamana gets singled out for extra punishment compared to their peers, when the market turns bullish, they come back with a vengeance. It happened the first time I picked them and when I picked them as a top gold pick in the Outlook 2016 report.

 

My outlook for them was that the market was undervaluing them based on the quality of their projects and as gold gets stronger, they would get a much higher valuation. Yamana has delivered on schedule.

 

I see gold going higher, and Yamana to keep outperforming many of its peers, so I’m pleased to be able to recommend a sell half for my audience that is sitting on big gains. They will be able to take profits and get their capital investment off the table while sitting with a core gold stock holding.

 

For the audience not in the name, look for weakness, I like their growth prospects.

 

Kaminak Gold (KAM.V)

 

In the Outlook 2016 report, I added Kaminak to my radar screen, they were trading at $0.85. In order to move them up to the top picks list, I had to do more homework about my concerns on permitting issues. For those that found the name from my report, now that they have been offered to be taken over by Goldcorp, it is time to look for new candidates.

 

The reason that I added them to the radar screen was because I needed to do more homework about my permitting concerns. Despite these concerns, I liked the economics on the project and their potential for growth which is why they made it on the Outlook 2016 report.

 

Just prior to that show, Kaminak had news about the economic evaluation at their project and also had a conference call. I was on the call, and asked my questions about permitting to Eira Thomas, CEO of Kaminak, she answered some of my question and suggested she would call me to speak further.

 

It took many weeks before I got a return call, and by then the stock had moved significantly. Then not long after they got the Goldcorp buyout offer.

 

I still have my concerns about that project getting permitted. It is a heap leach operation and as more in the First Nation communities hear details of this method of mining, I could see some opposition.

 

For the Kaminak shareholders, they are fortunate to get a takeover and be able to get a bit of a premium and dodge the permitting issues. It looks like a smart move.

 

Not much sense sticking around for more as I doubt there will be any competing bidders showing up to offer a higher price. There are better places to look, and I will have some for readers soon.

 

Gold Standard Ventures (GSV.V)

 

Gold Standard Ventures was the other stock that I added to my radar screen in the Outlook 2016 report. I had one concern about the past drilling near where they had announced their Dark Star discovery. They were trading at $0.86 and is up significantly, closing at $2.64 today. They have now reached what I would consider priced for perfection and would recommend a sell full position call.

 

This one came to my attention when they announced their discovery holes from their Dark Star project in Nevada. They had a conference call that I was on.

 

Eric Coffin and Brent Cook were also on the call, and they expressed concerns about where the past drill holes are in relation to the new discovery. I was also worried because I was concerned if they showed a cut-off in the gold mineralization and it is not open for exploration.

 

They assured us on the call that they would publish those old holes, but I checked a few months later and still couldn’t easily find them. Another concern I had was that it was winter and where their project is there wouldn’t be any drilling until the spring.

 

I’m a stickler for companies following through on crucial information when they say they will publicly. I’ve seen their plan maps and I still have concerns about how open it is or whether it pinches off.

 

Their stock has moved up a lot since appearing on the Outlook 2016 report and they now have a very rich valuation. It is much better to look for stocks that are cheap and yet to make a big move.

 

Update on IDM Mining (IDM.V)

 

On Apr. 22/16, I added IDM Mining to my pick list when they were trading at $0.125 and the stock is around a double now. Even though the stock has done well, events have happened that have me concerned about some of the reasons I picked them. I will be dropping them from coverage as a pick.

 

At that time, I was willing to go public making them a recommendation because we were in the late stages of discussions for them to become a member of my website sponsorship program. Having them as a member of the program was central to my argument of why I was willing to take them on as a pick.

 

They were a company that struggled to build an audience despite having a strong project, but I knew they were the kind of company that my audience would like. So I was comfortable picking them as I knew I would be able to follow them closely and bring the right kind of audience to the stock.

 

It has been a real struggle to close on them becoming a member of my program. And nearly impossible to get in touch with them since I’ve made pointed commentary about AME BC concerning their baseless accusations about First Nations extortion allegations.

 

Rob McLeod is a board member at AME BC, and President at IDM Mining, when I put out my commentary he got back to me right away with an email defending the position of AME BC. But then it became very difficult to get in touch, despite many attempts on my part, with Rob concerning the membership of IDM Mining.

 

I don’t care what AME BC says, if they don’t have names, and statements of facts that can be tested by thorough questioning about serious claims against First Nations then they are out of line. They can expect me to come at them with my commentary and ridicule the way they handled the issue.

 

Anybody that knows me well, knows that I would never keep quiet about these baseless claims about First Nations. My whole career has been about trying to build bridges between First Nations and mining. But I will never sit idly by when groups like AME BC attack First Nations with baseless claims. Even if that costs me business.

 

When it comes to IDM Mining. I was willing to go ahead with coverage despite them having a lot of stock out and not being very good at investor audience building. If they were a member of the program I would be there to help. As we have been unable to conclude them joining, and it being central to my coverage, I have to drop them from coverage at this time.

 

 

In Closing

 

So there you have it, my latest update report on my top stock picks. I’ve been able to drop some from coverage to make room for new picks.

 

Stay tuned, I will have new picks out soon.

 

All the best,

Allan Barry Laboucan

 

P.S. my reports are for information purposes only, before making any investment decisions it is important to do your homework and speak with your financial advisers.

 

 

 

Share on Facebook
Share on Twitter
Please reload

Follow
  • Twitter Basic Square
  • YouTube Social  Icon
  • LinkedIn Social Icon

Not Investment Advice

It is important for you to understand, Allan Barry Laboucan is not a licensed investment advisor and all readers should consult a licensed investment advisor before making any investment decision and to consult the company’s latest regulatory filings to fully understand the risks. This site represents the opinion of Allan Barry Laboucan alone. Do not trade in securities you read about online unless you have independently verified all information and understand that speculating in small, speculative securities like those discussed on AllanBarryReports.com often results in total loss. Readers are responsible for their own trades.