We’ve had some weakness in the junior mining stocks lately due to gold getting hammered. Where gold goes, so goes the gold stocks, and junior mining stocks. I’m always looking for times when stocks are across the board getting hammered in a sector, in particular when I like the fundamentals in gold and think it is oversold. I like bargains and I’ve been on the hunt lately for new picks.
The last proclamations from the Federal Reserve, although I see them a lot more about talking points than actual fundamentals, did cause gold to get hammered. The idea that the Federal Reserve can still scam the street with their hawkish tone after a sub 1% first quarter GDP boggles my mind. But they blather on about raising rates despite the economy slowing since they raised them only slightly and the sheep on the street fall into place.
This nonsense can only last so long, and with gold looking significantly oversold, I see it as a good time to be buying quality in anticipation of gold stocks including the quality juniors to come back with a vengeance.
I have been looking around lately and finding quality at bargain basement prices and I have a new stock to add to my list of top junior mining stocks.
For those that watch my shows I’ve done with John Kaiser over the past couple years were made aware of this company when it was trading much cheaper. But lately they have reduced the risk even more significantly and I’m ready to start formally covering it in the reports.
Before I start discussing this new pick, I know a lot of my audience are big fans of the shows that I’ve done in the past with John Kaiser. I really enjoy doing them because John does his homework and we think along the same lines so we have a way of digging deeper into good stocks.
Since I moved down to Mexico back in early February, I’ve been extremely busy running Alset Energy (ION.V) where I’m the president/CEO. Now that I’ve put together a strong team and also been able to change the direction of Alset to a more positive direction since I took over the company I’m in a better position to start doing shows again.
I have good news for those that enjoy the shows John Kaiser and I do together, we are in discussions and getting ready to start cranking out new shows very soon. John has a lot on his plate, including his Kaiser Research Online where he has been absolutely on fire with his stock picks.
He currently has a new website, it is really a platform for market participants that has the potential to reshape the junior resource space. It is in beta version right now, I’m one of the beta testers and I want my audience to know more about this website and his top picks. Stay tuned for new shows with John Kaiser and myself on the Allan Barry Reports website.
A New Stock Pick
I first started following this company a few years ago when I had heard John Kaiser talking about them and what stood out the most to me was that it was the largest position he had. In the past couple years whenever John and I would do a show he would bring me and my audience up to speed on their developments.
It really was a flatlining stock for quite some time, but in the past few months they have hit some fundamental milestones that have them primed for breakouts to the upside in their valuation.
Scandium International (SCY.V) is in the scandium sector as their name suggests. What is scandium you ask, it is a metal that is used as an alloy with aluminum that makes aluminum stronger and lighter. It has potential applications from pop cans to airplanes.
But what has been a little trickier is finding reliable sources that gives end users like airplane manufacturers the confidence they can get enough of it to make a restructuring of their manufacturing process. The potential is explosive for companies that have projects that could supply the demand that would come from companies that could use lighter and stronger aluminum.
When I’ve heard the story about the potential, it became perfectly clear to me how significant this could be to airplane manufacturers as fuel efficiency would be dramatically improved. Safety is another benefit from lighter and stronger aluminum.
It really has the potential to be a phenomenal benefit, but there are plenty of other industries that would benefit. I wasn’t joking earlier when I said airplanes to pop cans. We all know that aluminum is used in pop cans, but I was blown over when I heard about how with stronger and lighter aluminum/scandium cans that they could change the shapes of the cans from the boring ones we are all familiar with. These custom shapes could be the marketing departments gravy train if they could come out with cans that helped them differentiate themselves from competitors.
These are just a couple applications, vehicles could have much stronger components that would make plenty of consumers excited about buying new trucks and such with stronger and lighter aluminum beds and other parts that would stand up much better than their current versions.
One show I did with John Kaiser he asked me if I know that commercial when one of the truck builders drops something heavy onto the bed of the truck. He said if they really did that, there would be a big dint in the bed of the truck. But if the bed was made from an aluminum/scandium alloy, it would bounce off and there would be no damage.
So those are some of the benefits and potential markets for aluminum/scandium alloys, but the bigger question was can they economically mine their deposits and build the markets for their scandium. Well recently they have been passing these milestones and just last week they announced that they have received their mining permits.
When I initially started hearing about the explosive potential of aluminum/scandium alloys and what Scandium International has on their project from John Kaiser, I had an immediate reaction. It won’t be long before someone comes along with an off-take agreement that would enable them to build their mine and their pipeline to commercialization.
Now that they have their mining permit, I think it is imminent that an off-take partner comes along. When they do, I believe we will see a wow-factor in the stock that drives their stock valuation much higher.
I’m pleased to add the company to my roster of top picks, they have explosive growth potential ahead of them and I can see in their immediate future they will be turning their potential into reality.
All the best,
Allan Barry Laboucan
Allan Barry Reports
Alset Energy (ION.V)
Advance Gold (AAX.V)
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.