Top 12 Core Holdings
As background for this report I suggest you invest an hour of your valuable time to listen to the following interesting Al Korelin economics report: http://www.kereport.com/2011/
With these parameters in mind, having been challenged to pick a dozen of the best stocks in my portfolio out of the hundreds I hold, (most as already free trading shares) I am approaching this as selecting what would be a dozen excellent CORE HOLDINGS, for long term relatively SAFE appreciation, meaning stocks that are relatively safe, well established in growing market sectors. Now I want to be very clear about this, since I do not know whether your individual portfolios do have a CORE HOLDING that you rarely trade, these are just some suggestions to establish that 50% of your portfolio in low risk stocks at various price levels that you will have to allocate based on both your personal interests and convictions, plus size of your portfolio.
Most “establishment” analysts focussed on the general market will tell you, you should have 50% in blue chips, divided among retailers, manufacturers and financials etc. plus 20% in bonds, 5% to 10% max. in all precious metals, (ridiculous for the past decade) and 10% for mutual funds and only the balance for riskier strategies like options or penny stocks. One of the key risk management tools is not investing more than 2% to 5% in any one trade so that if it goes sour, (as some are bound to do no matter what your investing criteria) your capital is not wiped out. You may get starry eyed about some sure fire .20 to .50 stock pick that is sure to return 1000′s of % profit, but as sure as you invest major money like $5000. to $25,000 depending on the size of your portfolio, if it dosen’t work out, it may take you a long time to recover, and constitutes gambling rather than investing, as many people have learned to their sorrow. Better to take a SMALL stake and only increase it when results warrant.
My philosophy is “slow and steady wins the race” so I apply strict discipline to adhere to the guidelines I have outlined above, which is admittedly quite restrictive, so consider the below suggestions as the 40% to 50% “blue chip” portion of your precious and strategic metals, and/or commodities portfolio. Because of that, some are in the SENIOR or intermediate category as opposed to strict terminology for juniors. I am deliberately listing these in alphabetical order so that nobody assumes my listings are by order of preference, do your own due diligence.
ENDEAVOUR Mining EDV-V
I bought originally in its “Merchant Bank” role of financing other miners but it has since become a gold producer in Burkina Faso Africa and is in the process of merging with Australian Adamus Resources with huge resources there, so the combined company is an absolute steal at current $2.50.
ENDEAVOUR SILVER EDR-V, EXK/NYSE, EJD/Frankfurt
Let’s consider this a “Bakers Dozen” by adding EDR-V, with fast growing low cost production of silver @ under $7. an oz. and $122M. in Cash for expansion and acquisitions.
FIRST MAJESTIC SILVER FR-V
One of my first 10 baggers due primarily to the great leadership of Keith Neumeyer and it just continues to add new mines and resources, no slowdown here, PLUS it has a silver bullion and coin store where you can buy various silver products DIRECTLY without the markup of dealers.
KINROSS GOLD K-TSX / NYSE/KGC
What can I say, my call to pick it up once it crosses the $16. threshold was bang on as it was available slightly below that figure for a few days afterward and has now climbed over $18. and with a similar asset base among seniors, is less than half the price of Goldcorp G/TSX or GG in U.S.
NEW GOLD TSX/NGD/AMEX
This is an amalgamation of 3 companies with great management, growing resources and one of the best, most undervalued profiles as attested to by several major analysts.
NEO MATERIAL TECHNOLOGIES NEM-V
First to write it up and bought @ $5.79 Nov/10. Since I originally profiled this stock several prominent analysts have climbed on the bandwagon as it being a representative of established Rare Earth’s industry companies with solid credentials of profit and off-take contracts.
PRETIUM GOLD PVG/TSX
22% held by Silver Standard Resources and 5% by insiders. Its claim to fame is its CEO Bob Quartermain the former head of Silver Standard Resources and with 22m oz of gold in reserves, (5th largest in the world) with super high grades, it has a very positive growth profile for the next few years with 2 near production major resources.
PROPHECY PLATINUM NKL-V
Received free shares in spinoff and then bought more under a $1. This was a pleasant surprise as a “spinout” from Prophecy Resources, (now Prophecy Coal) and shows great prospects for rapid growth into production of PGM’s.
SANDSTORM GOLD SSL-V
Bought Feb/10 @ .60 and this one I am NOT selling even at over a DOUBLE, simply because they are the ONLY 100% PURE GOLD streaming Company, and I too like the low risk, high profit margin that represents, and expect continued appreciation. Former Silver Wheaton management (see below) applying a similar royalty program to gold.
SILVER WHEATON TSX/SLW/NYSE
Its claim to fame is as a royalty company making incredible profits in silver because it does not have to worry about mining costs and all the environmental and permitting headaches, and for those with bigger portfolio’s, you might consider substituting or adding Franco – Nevada FNV / TSX and/or Royal Gold. RGLD/NASDAQ both more mature and expensive companies.
TALISON LITHIUM TLH-V
Another one of my successful early picks first received in exchange for my Solares Lithium holdings, now back at a good buy point. This is one of the best established players in the lithium field supplying the growing market for lithium-ion batteries in both the consumer and hybrid vehicle fields.
VITERRA Inc. VT/TSX
Biggest grain handler in Canada/Australia reports 3rd Qtr. profit almost DOUBLES: This is an old established company with steady growth and dividends in the agricultural industry where demand for food on a world scale will benefit long term.
WESTPORT INNOVATIONS WPRT/Nasdaq Natural gas engines J/V W/Cummins
Though not yet a profitable company, my hundred shares were up $456 in ONE DAY last week, so this one is representative of a solid established company with patents and world wide contracts that will benefit from the switch to natural gas to replace diesel.
While you can put a pretty good chunk of portfolio money into these 12 relatively safe stocks, by no means am I suggesting these 12 will produce the biggest returns over the next year or two, for that you need to monitor my weekly stock picks and commentary. I will monitor this CORE portfolio and add or subtract recommendations on a monthly basis, IF there is a major change in market sentiment and/or individual company circumstances.
You should also note that these twelve do not even cover other sectors I am invested in. You may find some of these names in FUTURE portfolio profiles I will be posting over the next month. Each sector may have a different number of companies posted, but I intend to cover my holdings in ETF’s (which may also change from month to month as I monitor the markets) but also not covered by these 12 picks are coal, crude oil, iron ore, base, technology, specialty/critical metals, and some agricultural commodities such as potash/phosphate.
Myron Martin via his website www.myronswinning juniors.com is offering ideas for your consideration and education based on his research. Myron Martin is not offering personal financial advice and is not, nor purporting to be, a financial or investment advisor.
Myron Martin as A FELLOW INVESTOR AND TRADER is SHARING HIS THOUGHTS for educational purposes only. While every effort is made to present information from sources believed to be reliable, including companies own websites and press releases, unintentional mistakes and errors are possible.
By accessing the website www.myronswinningjuniors.com you specifically agree that any action you may take as a result of reading the information presented from time to time is solely at your discretion and responsibility and will not hold Myron Martin or www.myronswinningjuniors.com in any way responsible for any investment decisions you may make for your personal account. Before considering any purchase decision on stocks Myron Martin is profiling/trading, it is imperative that you do your own due diligence, and/or get professional investment advice from a qualified financial advisor.