Time To Bottom Fish?? The Tide Is Rising.
There's an old saying with stocks and the stock market and that saying is that "A rising tide lifts all boats." What it means is that even though the stock you own doesn't hit it big, as long as it's in the same sector as the big name stocks and as they rise in value, the smaller unknown stocks tend to rise along also. Now this a just a theory but when the marijjuanna boom was on, anything that had post written on it saw shares being bought up like mad. By the way there were a lot of small mining comapnies at that time that were just basically shell companies that were being taken over and turned into pot stocks. Not surprising, most of those plays have gone up in smoke whereas they should have maybe just stayed as miners and explorers. Anyhow, getting back to mining stocks here, just this past week I noticed that Barrick Gold hit a new 52 week high of over $40 a share and of course others like Kinross and Eldorado and a few of the other big names were also seeing their stocks scream higher. The tide is coming in for the majors.
Over the past few weeks on the website we've been going through the directory of the 2000 odd juniors that are listed on the website. This is something we should do every year but we don't and so as time goes on we ended up with hundreds of companies that have to be deleted as they have gone out of business or been bought out. During this time we are also updating and adding new junior mining companies that were'nt listed in the directory. While doing this tedious job we end up going to every listed company website to make sure they are still active. While I'm at the website I'll take a quick look to see when the site was last updated and also take a peek at the stock price. You would be surprised just to see how many of these companies have a stock price that is sub 5 cents.
Some of these companies were just one hole wonders that came into existance right around 2011 -2013 when gold prices were sky high. Others however are long tenured companies spanning decades of time but for some reason have properties of little interest or maybe of little value. So what I did was take a few of these penny miners and put them on a watch list to see the day to day trading activity of them. Most of them never trade a single share for days, even weeks at a time. The stocks just sits there with maybe a daily change in the bid or ask lots but that's about all.
Then a few weeks back, Thursday and Friday April 23, 24, these stocks that did little to no trading all of a sudden came to life. One stocks had someone dump 1.7 million shares into the bid. Two others however had single and multiple orders hit the ask and other saw increased bids and decreasing asks. I saw this same scenario back prior to the 2011 highs in gold where small juniors with just marginal properties were seeing their stocks appreciate almost for no reason except the fact that "A rising tide lifts all boats."
One of the theories here is that as long as the company has a few bucks and a property that could be optioned or even the other way around, there is a good chance that these stocks will see some interest. Buying stocks for a penny or so, it doesn't take a very big move and you can double your investment pretty quick. Also with gold prices hitting highs there is money starting to come back into these smaller juniors that had properties of little interest. Sub gram per ton will start to look more attractive especially now with discounted fuel costs and zero per cent interest rates. The money has to go somehwere.
You can check out this website in alphabetical order pretty much every junior mining company out there so you don't really even need to leave the website. At the time of this writing we are still cleaning up old links of by gone companies and adding new ones as they come along.
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