by Travis Johnson, Stock Gumshoe | August 8, 2011 12:56 pm
This is premium content. To view this article (and to have full access to the rest of our articles), sign up. Already a member? Log in.
Source URL: https://www.stockgumshoe.com/2011/08/sells-clearing-out-small-positions-to-build-cash/
Copyright ©2024 Stock Gumshoe unless otherwise noted.
I see the stocks your watching. So now that there is blood on the streets and you have some cash, what would you say are your top 3 picks going forward in this market. Not looking for financial advice just your opinion.
Hi Travis,
aI bought several Sprott companies (as you have). I think you still own them so is there any reason to either worry about the lack of appreciation or be happy at what might be coming down the road? These guys are all putting me to sleep and I’ve held them now for almost a year, down a bit on all of them.
RBGPY
SILU
SCPZF
Thanks and good trading
I haven’t ever owned Reckitt Benckiser, but I still think they’re in a good position for global consumers and they still pay a 3.5-4% yield so my inclination with those investments is to hold them and let them compound, but it looks like they did take more of a tumble recently than competitors like Procter & Gamble and I haven’t looked into why — if it’s just fear of european consumers, I’m not so worried, but I haven’ scoured their stuff for current performance.
The Sprott companies, both Resource and Lending, are incredibly cheap now, I think — they have fallen with the collapse in commodity prices and the fear of global recession, to be sure, but I think Sprott Resource is still a great undervalued speculation and Resource Lending is now going to be yielding better than 3% with, I think, dramatic dividend growth over the next three years. My opinion hasn’t changed on either of them, though certainly the share prices are lower. If commodity prices overall fall and/or continue to fall the share prices may well come down further, but I still think we’ll see higher commodity prices long term and I think that over time these diversified investing/lending firms should get a better valuation and price than the junior miners that they seem to generally be trading with. I own both as fairly substantial holdings, so I hope I’m not wrong.