Rick Rule, President & CEO, Rule Investment Media LLC

FOCUS: Natural resource stocks
 

MARKET OUTLOOK:

Despite some economic headwinds, concerns about global geo politics, and domestic political turmoil in the U.S., both debt and equity markets continue to be very strong in North American markets. But confidence and liquidity are features of this market.

Resource markets continue strong as well, with strength in precious metals markets finally being reflected in precious metals equities, and strength in energy markets, and industrial materials generating more modest responses in their respective equities markets.

The financing window in junior equity markets is wide open, as quality juniors are launching over subscribed financings at minimal discounts, and no warrants, often with strategic industry investors.

Pockets of deep value remain, in junior markets. Potential tier 1 deposits, in out of favor materials feel very cheap

Energy equities, particularly Canadian energy equities also appear cheap

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TOP PICKS:

Dundee Corp (DC.A TSX)

a complex, mis understood, deep value stock. Effectively a value added resource equities manager seling at a greater than 50% discount to NAV. Imagin buying a junioe resource equities fund at a 50% discount. I owned the predecessor , Dundee Bancorp, and watched it soar from C$.70, to C$42, as the junior market switched from “ bear” to “bull”

I-80 Gold (IAUX NYSEAMERICAN)

An explorer developer headed by the serially successful Ewan Downey. Way over sold do to Equinox Gold liquidating a large position to fun their own work. The over hang is now gone

Bravo Mining (BRVO CVE) ( High Risk)

A very interesting nickel – PGM play in Brazil, hampered in the market by metallurgical concerns. The company recently announced a very high grade copper discovery, on the same property, that has the “ hall marks” of a IOCG system.