Friday April 13, 2012
by Adrian Day, editor Global AnalystWe firmly believe we are only part way through a major secular bull market in resources, and, though we will attempt to take advantage of the volatility inherent in the sector, we don’t want to be too clever and miss major moves.
In reviewing our asset management positions, we note that we are long-term bulls on commodities. In addition to the best of the senior miners, we own juniors with low risk and/or projects of potential interest to a senior.
On individual companies, we added most heavily to
Altius (
ALS). The stock remains undervalued despite a move up in the stock price as its major iron ore project in Newfoundland increases in value.
We have also added to
Lara Exploration (
LRAXF), a very undervalued prospect generator with multiple joint ventures advancing this year), and
Pan American Silver (
PAAS), which is depressed after the silver price drop.
We would expect to raise a little cash later this quarter in what is often a seasonal high for the stocks, putting the money back into the sector during the traditional summer doldrums. A few years from now, the entire sector will be higher, so we are sticking with it.
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