As reported by Stockhouse,
Sprott Global founder Rick Rule was the guest speaker last Thursday at Resource Opportunities 2013, a one-time event that was hosted by
Canaccord Wealth Management.
Here are some of the key points from an 80-minute speech that focused on a number of themes, including Rule's renewed interest in sectors such as uranium, platinum group metals, and geothermal power.
- Everything in the resources and commodity space is ‘on sale’, 70% discounts.
- Focus on proven management teams.
- Thinks resource stocks will get cheaper over the coming months, so no rush to buy now, take time to do your due diligence.
- Thinks the resource and commodity segments will start to improve in the fall of 2013.
- Says we’re in a decline during a cyclical bull market, which is not done.
- Favourite sectors are uranium and platinum/palladium.
- Thinks the prices of the underlying commodities have to increase, simple supply and demand.
- Said it is hard to sell dogs currently, since people hate selling at a loss with the hopes of a recovery, but it is sometimes necessary. Take what capital you have and reposition into the companies that will excel when the recovery occurs.
- Focus on valuing developmental stage assets (at a discount).Patience will be required, thinks it will be 2-3 years before these types of investments really pay off.