safety firstHere is the text of an email reply I just sent to a friend, that I think is worth repeating for the forum:
"I still think we have a way down to go before the PM sector bottoms. I think gold wants to go up but the CBs are still in control and will cap it with whatever they have to throw at it. They cannot afford to have gold running higher while confidence in the financials is lower. Period. So more downside for the metals, and shorting/margin call selling will drive the stocks lower too, until all the fear is wrung out. I think by next week we may find the floor.
To answer your question about which stock to buy, rather than worrying about which one will run first, perhaps you should consider which one will be safest to own for a long time in case your trade goes against you. For me, SEG is safe because it just finished raising a lot of money so it is fully funded, and it is already at historic lows so the downside risk is reduced. SPM could drop a lot even though it too is fundamentally sound.
My personal top pick for security and potential upside right now is IPT, and I bought more last week. I think rather than be aggressive and try to play the bounce right here, the prudent move if you want to be a buyer is to buy safety. Sure we could get a V-bottom and I hope we do. But I am resolved to play this as if we are going to deal with a correction for several months, and therefore I want to own juniors with lots of cash in the bank so that I can sleep well at night even if the share prices get bombed." -ENDQUOTE
cheers!
COACH247
Voluntary disclosure: All three stocks I mentioned are advertisers on my website, and I own shares in all of them. I am not a registered financial advisor and therefore my comments must be considered as a personal opinion and not investment advice.