How do you “stop America’s laziest minority from ruining OUR country?”

Friday File look at defensive ideas from David Eifrig's Retirement Millionaire

By Travis Johnson, Stock Gumshoe, July 14, 2012

Before I get on to that “laziest minority” bit, I did want to throw out a few comments and some thoughts about a few stocks I follow closely:

If you don’t think the world is going to hell in a handbasket, and you do think that commodities in general will hold up reasonably well (which means China won’t stop building railroads and cities), then I think we’re seeing a pretty nice opportunity to pick up shares in Sprott Resource Corp (SCP in Canada, SCPZF on the pink sheets), Sprott Resource Lending (SILU), and Altius Minerals (ALS in Canada, ATUSF pinks) … the first is the most diversified, including energy, the other two are primarily exposed to metals of various types. I own them all already but would probably buy them in the reverse order (ALS, then SILU, then SRC) if I were starting today — SILU pays a dividend that I expect to rise rapidly in the coming years, so that might provide some relatively quick return, but the other two will most likely be very long-term plays unless SCP “monetizes” one of their portfolio companies in the near future by taking them public at a substantially higher valuation (that doesn’t seem that likely in this fearful summer, but you never know).

And other stocks that are catching my attention recently? Lonrho, which is hard for most people to buy unless you can trade in London (LONR in London, LNAFF on the pink sheets), I think we’ll look back in three years and consider the current price of under 12 cents a share to be a ridiculous bargain given the likelihood that they’ll reach sustainable profitability this year and start paying a dividend … but to be clear, I do still think of this as a ten-year+ investment and I plan to ride it as long as management doesn’t do anything stupid (they’ve come close). Also in the “beaten down” area is Superior Plus (SPB in Canada, SUUIF pinks) which I don’t own but think is looking quite compelling again now with the price drop bringing the yield back up to 9% and the new CEO buying a few more shares at higher prices this year. And Acadian Timber (ADN Canada, ACAZF pinks) is tempting me to add to my timber-focused holdings with its 7%ish yield (I don’t own that one, but I have held the lower-yielding Rayonier ...

Sign Up for a Premium Membership

To view the rest of this article (and to have full access to the rest of our articles), sign up.
Already a member, log in.

Become a member