How Do You Pick A Great Junior?
Source: resourceinvestor.com (1/21/08)
Jim Letourneau (Big Picture Speculator), a speaker at the Vancouver Resource Investment Conference on Sunday, called precious metals a "happy hunting ground" for investment as of January 2008.
The panellists for Picking Juniors were John Kaiser (Bottom Fish Report), Eric Coffin (Hard Rock Analyst), Jay Taylor (Jay Taylor's Gold and Technology Stocks) and Jim Letourneau (Big Picture Speculator).The session, which ran for a too-brief 30 minutes, began with each of the panellists saying what he looked for in a junior stock. Jay Taylor led off by saying his investing philosophy was “buy and hold” and that he looked for junior companies with good management...
In an exclusive interview with Resource Investor that took place before the panel session, Jim Letourneau, Big Picture Speculator, we asked which junior investment categories are worth looking at now.
“Precious metals have the wind at their back,” Letourneau said. “The senior producers like Barrick, Newmont and Goldcorp are flirting with 52-week highs. The price of gold has made a nice run and at some point this good news will filter down to the juniors either through the recognition of a new discovery or more likely, the acquisition of an advanced project(s) by the majors. Junior natural gas stocks have been crushed but strategic investors have started to accumulate big positions in that sector. Uranium stocks have been beaten down but we are nowhere near a top in the uranium cycle.”
Letourneau called precious metals “a happy hunting ground” for investment as of January 2008.
“Probably the biggest thing that investors should watch is the chart of the Commodity Research Bureau (CRB) Index and the TSX Venture Index. When those turn south, liquidity in the juniors dries up almost instantaneously.”