Vol. 86 - WHAT AN OPPORTUNITY

Dear member, 

This past week was one we will remember for years to come. Record losses and record gains all in one week. This can be attributed to the historic levels of volatility in the market. Investors have oversold many sectors including the junior resource market.

When you look back in history you'll find that the junior stocks are the first to be sold in uncertain times. Why is this? Because they are believed to have the most risk. But wait, didn't a 158 year old investment bank declare bankruptcy last week? Isn't the largest insurance company on earth being bailed out by the US government to avoid bankruptcy?  

The stock market moves on fear and greed. Investor sentiment carries many stocks way above their intrinsic value, but it also works the other way. In the current market, junior companies (the ones we've all grown to love) have been beaten down due to investor fear; not because they aren't fundamentally strong. In fact, many of these juniors have never been so valuable, although you wouldn't know it by looking at their share price; a classic signal that now is the time to look for new entry points.

Many companies are trading so low that their market cap is less than their treasury account balance. Imagine that, a speculative junior with more cash in the bank than their entire market value. Now, what if that company has an asset with the potential to generate hundreds of millions in revenue? They have the cash, they have the asset and their stock is down 60% on the year. What an opportunity!

This is the time when many successful investors look to take positions in companies they've been watching and researching for an extended period. Bargain hunters like Warren Buffet are moving back into the market, signaling a bottom. That is why (provided the stock doesn't