RE:RE:RE:RE:RE:RE:This is nothing short of a disgrace!colt45acp -
I read the Moriarty article and agree with it and him. Lots of good stuff in there and thanks for pointing it out.
Let me make a few cogent comments based on that article.
One point of interest is the seasonality of junior gold company share purchasing. He is dead right. We are now in one of two choice time frames for buying shares of good companies low, the other being tax-loss selling time in December.
He named a number of good companies which started as penny stocks and now are in the multiples of dollars. That is exactly the strategy that works: buy low, sell high! That old saw has made me and countless others some serious coin. The problem is that many, especially newbies, shy away from a promising company because the share price is low and despite what may be exceedingly promising fundamentals. Right now there are a number of such companies hiding in plain sight and this is the prime time to buy them.
Bob Moriarty puts it this way:
"Bob Moriarty: Let me give you an analogy. I’m really glad that you mentioned both those companies, because I know them intimately. Victoria Gold, it’s run by Tara Christie’s husband and Tara Christie runs Banyan Gold. While Victoria Gold has done extremely well this year, it’s only up a hundred percent.
When you buy a stock, it’s not a question. Well, gee, it’s got a $2 billion market cap, like New Found Gold, but when you’re buying New Found Gold, the problem with it is, what are the odds of it going from $2 billion to $4 billion? Now, I absolutely think it’s going to go for $4 billion or $6 billion or $8 billion or $10 billion, but it’s not going to do it this week or next.
Banyan on the other hand, at C$55 million, could Banyan go from $55 million to $550 million? Absolutely. That’s why I love different stocks like New Legacy, because I’m looking for something that will increase in percentage return. And one thing, Victoria doesn’t have that much potential any longer but Banyan and a New Legacy do."
The key words here are, " I’m looking for something that will increase in percentage return." In other words, buying a cheap stock with high probability of unmasking a massive deposit gives you leverage. This simply cannot be found by buying a multi-dollar stock.
This is what Ely had - leverage. It is easier to buy a dollar stock than a seven dollar stock! If Ely is taken over by GROY, that leverage is gone. Assuming GROY remains at more or less its present price of US$5.53, what could be the drivers which would cause it to triple or quadruple? I cannot think of any. I could for Ely from $1 to $4!
Another point made is very important: we are looking at a crash in the NYSE. No one knows exactly when that will happen but a lot of sharp analysts are talking about it as a "done deal" in the not-too-distant future. You don't want to be holding typically overpriced stocks at that time.
Here is what Moriarty says about that:
"
Bob Moriarty: Thank you. Thank you. Okay. So what I’m looking for is how stupid is it going to get, and I’ll be candid. I never dreamed of people selling imaginary statues for millions of dollars, or NFT’s of a dog for $4 million, or NFT’s of farts for $89. Your house plants for $19,000. We are at peak stupidity. We are in the greatest bubble in world history. We have people betting on absolute stupidity, and the bubble’s going to burst very soon.
Now I’m going to tell you something that’s my opinion. I do not want you coming back and holding my feet to the fire. I’m serious. It’s an opinion and I can easily be wrong, but I believe that we’re going to see a peak in the stock market in the July, August, maybe early September area, and we’re going to have the biggest crash in history in October. It could easily take gold, silver down with it in the same way that they got crushed last March, March of 2020, and that it was not a sell signal. That gives a signal that bad feces is going to happen soon, and you need to figure out what you’re going to do about it.
Now by and large, I’m just going to sit through it. Okay. I’m going to keep some cash handy for plucking some low hanging fruit, but I think that we have reached peak stupidity. I think the bubble’s going to burst, and I think bad things are going to happen in the next 3-4 months."
Yes, the golds will be caught in the downdraft but only temporarily as they will reverse and move up smartly once the herd realizes they represent real money and real preservation of purchasing power. This is what happened in '29 when
Homestake over the next several years led all stocks on the NYSE UPWARDS. The upward move in
Homestake lasted a good many years while the non-PM stocks languished at low levels. Well, the same thing is going to happen this time or at least the probability that it will is great.
So, what to do? Keep your powder and keep it dry, don't get caught in the crosswinds of psychological emotionality thus leading to bad decisions, don't be swayed by fast talkers, determine the companies you feel have the best chance of climbing from pennies to dollars and hold on for the ride.
Thanks, again, colt, for pointing out this article. Here is the link for others who wish to read it:
https://energyandgold.com/2021/06/21/bob-moriarty-these-are-the-two-best-times-of-the-year-to-buy-junior-resource-stocks/