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SAN DIEGO – Got to respect a full monty.
That’s what an asset manager down here told me three years ago, when gold was up $30-something midday. Gold then was in the $600s.
Here is a full monty or three that command, if not respect, at least notice:
- South American Silver (TSX: T.SAC, Stock Forum)shares on the TSX got clocked. The Bolivia enterprise lost 21 percent in a day (Thursday) on 11 times its usual trading activity. On Friday the stock shot forward again. SAC board member John Watson told me, “Bolivia is re-nationalizing a couple of operations that were sold off to Glencor back in the 1990's. Spooked the market, but not likely to be applicable to SAC.” All well and good. In the wake of Bolivia nationalizing efforts on four mines in that country, investors are wary. Enough so that SAC Friday said its concession in Bolivia has no government link that would require nationalization of the mine. Bravo for an informative press release. The $200 million market-cap SAC has plenty of shares that plenty of short-sellers covet. Mr. Watson hopes this is just a “good chance to re-boot the share price.” I think the stock could get hairy as investors recall Venezuela’s administrative melt-downs. Takeaway: It’s a lucrative trading stock for now. Up and down.
- I know little about potash. But I know I need more agriculture in my holdings. Passport Potash (TSX: V.PPI, Stock Forum) is drawing writers and investors to its Holbrook patch of Arizona real estate. So much so that I hear PPI is using a Lear jet to accelerate the tours. Investors include Phillip Frost, chairman of Ladenburg Thalmann Financial Services (AMEX: LTS, Stock Forum) in Miami. He is a billionaire human being and owns 17 million shares of PPI. Got to respect that. Potash is a fertilizer – basically mined salts that contain potassium. Potash is a leader on the hype parade these days. Still, potash is the real meal in a world with fewer and fewer meal tickets. Note: Passport shares, after a 25-cent unit that raised $7 million in early February, might weaken when those shares come free trading in early June. Or not, if the buyers in that non-brokered private placement (including, I am told, a wealthy asset manager and energy executive) hang tough.
- The U.S. dollar is plumbing 16-month-lows, and gold is hitting new highs. Used to be, very little happened with gold (and silver) futures in Tokyo trading, then Singapore, Frankfurt, Zurich and London. Investors were waiting for the NYC open. No more. Gold sets records in Asia trading these days. Oh, and all those non-dollar priced investments? Canada equities? Australia resource stocks? They’re worth more and more U.S. dollars, almost by the day. Got to respect moves like that.
- Finally, stock warrants from placements one and two years ago are inflating company treasuries. Pelangio Exploration (TSX: V.PX, Stock Forum) is one example. Ingrid Hibbard’s once-scrawny Ghana prospector this year has netted $5.6 million from placement holders of 65-cent warrants. More money to drill the Ashanti Gold Belt. Got to give that some respect. We explore other West Africa gold prospectors in Ticker Trax.
(Folks: I don’t own any of the stocks in this report. I am not short any stock in this report.)
Coming: Join Stockhouse later this month as we size up how record-high gold prices and new technologies are re-invigorating fabled North American camps in Nevada, Yukon, Red Lake and more. Plus: the companies that are leading the charge to find new discoveries.
SKED: I plan to attend a Boca Raton, Florida, metals conference in late April. It is the Casey Research Conference. I am told the three-day confab already is sold out. I also will be with Stockhouse next week in Calgary at the opening of its new office.
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