Newsletter Writers Reveal Stock Opportunities During Tax Loss Season

1. Tectonic Metals Inc. and AbraSilver Resource Corp. are billboard sponsors of Streetwise Reports and pay SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Tectonic Metals Inc., Barksdale Resources Corp., Midnight Sun Mining Corp., Libero Copper and Gold Corp., Getchell Gold Corp., Adamera Minerals Corp., Barrick Gold Corp., and Emperor Metals Inc.
3. Katherine Del Buono wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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The window for tax loss selling, or as Bob Moriarty of 321gold.com put it, "the tax loss silly season is that 6-week or so period starting in November and running into just before Christmas when investors clean out the stocks they own that have gone down the most to be able to write off the losses for the current year."

RBC Wealth Management has an article that details some of the pros and cons of tax loss selling here. However, this article is not intended to sway you one way or the other about whether to participate in tax loss selling. Rather, the goal is to see what opportunities may arise in this season. 

In Moriarty's December 19 article, he says the tax loss season is "the worst time of the year to sell and the best time of the year to buy."

Jeff Clark of The Gold Advisor and Paydirt Prospector also wrote of the opportunities in tax loss selling in his December 16 piece. He wrote, "There are two occasions when you can buy a great company for a fire-sale price. After a big market crash. And now, during tax loss selling."

He continued, "Tax loss selling occurs when an investor sells a stock at a loss in order to deduct that loss from their taxable income. It exaggerates the selling and, thus, the decline in that stock's price. The selling, in other words, is not directly associated with the company (though it can be) but more with investors who sell a stock that's down for the tax benefit."

With this in mind, Jeff Clark outlined a specific strategy: "place stink bids on any stock you want shares. This is a very good time to practice stink bids—placing below market orders — because a stock could suddenly see a lot of selling and thus a price that reaches an abnormally low level."

With this in mind, we at Streetwise thought it might be a good idea to reach out to some of our top contributors and see what their recommendations are for the end of the year. Below, you will find commentary from Bob Moriarty, Michael Ballanger, Jeff Clark, and others, filled with insight on how they think you should spend the rest of this investment year. 

Bob Moriarty 

When asked to provide his recommendation on moves to make during this tax loss season, Moriarty told Streetwise, "While 2024 has proved to be a disaster for resource stocks due to money being sucked out of the space because of investments in the cryptocurrencies and general stock market, it also means there are literally hundreds of good junior lottery tickets selling for giveaway prices. All things change, and look for a major reversal in cryptos and the stock market in 2025."

Moriarty noted that it would be impossible to list all the stocks that could benefit, but he listed a few that he believes could be good opportunities:

1. GSP Resource Corp. (GSPR:TSX.V; GSRCF:OTCBB) had a low of $0.07 for the year with a high of $0.16, now at $.095
2. Juggernaut Exploration Ltd. (JUGR:TSX.V) had a low of $0.05 for the year with a high of $.14, now at $.06
3. Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX) had a low for the year of $0.24 with a high of $0.87 now at $.265
4. Tectonic Metals Inc. (TSXV: TECT; OTCQB: TETOF; FSE: T15B) had a low for the year of $0.04 with a high of $0.14 now at $0.045
5. Barksdale Resources Corp. (BRO:TSX.V; BRKCF:OTCQB) had a low for the year of $0.11 with a high of $0.49,5 now at $0.17
6. Westhaven Gold Corp. (WHN:TSX.V) had a low for the year of $0.09 with a high of $0.27 now at $0.095
7. Dynasty Gold Corp (DYG:TSX.V) had a low for the year of $0.10 with a high of $0.28 now at $0.125
8. Silicon Metals Corp. (SI:CSE) had a low for the year of $0.035 with a high of $0.15 now at $0.035

Malcolm Shaw

Malcolm Shaw of Hydra Captial shared a lot with Streetwise Reports, focusing primarily on the energy sector. 

He said, "Tenaz Energy Corp. (TNZ:TSX) was my top performer in 2024, and one of the top performers on the entire TSX, for that matter. I'm sticking with this one. I expect the company to continue to grow through its thoughtful and accretive acquisition strategy as Anthony Marino and his team grow TNZ into a mid-cap energy company. TNZ's first significant acquisition in the Dutch North Sea should close around the middle of 2025, and its recent CA$140 million bond issue suggests to me that another acquisition could be coming in the relatively near term.”

"Another overnight success that has been 15 years in the making is Condor Energies Inc. (CDR:TSX.V). Their Uzbek gas field revitalization project is going very, very well, and the company's recent oversubscribed capital raise at CA$1.90 positions the company to accelerate its Uzbek gas development plans while also giving the company a great foundation on which to build its Kazakh LNG business. Condor plans to supply LNG for industrial customers in Kazakhstan, which it can do at a significant discount to diesel fuel," he continued.

Shaw also said he would be keeping an eye on "Tuktu Resources Ltd.'s (TUK:TSXV) first horizontal well in Q1 2025 with great interest. Their vertical proof-of-concept test performed much better than expected this year, and it may open up a significant area for drilling future light-oil wells. Early indications are positive, but this is still speculative. It's hard to come across quality "penny stock" speculations in oil and gas, so when I see something with promise, I like to have some chips on the table. People, including me, speculate on junior penny mining stocks all the time, but it's just not as common in oil and gas . . .  and yet the timeline to cash flow in the success case is much shorter.”

As for the mining side of things, he shared a case for Midnight Sun Mining Corp. (MMA:TSX.V; MDNGF:OTCQB). "The company has copper oxides that will enhance the profitability of First Quantum's nearby Kansanshi mine in any market environment. It also offers top-tier copper exploration exposure that is expected to be drilled in 2025. Also, in copper, I like Libero Copper and Gold Corp. (LBC:TSX.V; LBCMF:OTCQB) as it tries to bring Macoa into the mainstream after being forgotten for years. Driving is underway there now, and assay results are expected to start coming in soon. Macoa reminds me a little of Solaris' Warintza deposit in Ecuador, which comes for a fraction of the price. LBC is partially backed by Frank Giustra, which I think is a positive when it comes to raising its profile in the market. Lastly, I think Vior Inc. (VIO:TSXV; VL51:FRA) got a whole lot more interesting recently as the old Osisko Mining team came in to run the company. With a $60 million market cap and new leadership coming off the recent sale of Osisko Mining Corp. (OSK:TSX) for more than $2B, this one is well-positioned for increased investor awareness should the current 60,000-metre drill program show that the Belleterre mine trend is as fertile at depth and on-trend as hoped."

Michael Ballanger

Michael Ballanger of GGM Advisory Inc. also shared his insights on moves to make during this season. He wrote, "While Getchell Gold Corp. (GTCH:CSE; GGLDF:OTCQB) has been locked in a range of CA$0.10-0.22 for the entire calendar year, I still consider it my top end-of-year purchase that will be going out to a rather extensive audience."

Ballanger also recommended Adamera Minerals Corp. (ADZ:TSX.V;DDNFF:OTC), writing, "other companies that undoubtedly need some love include Adamera Minerals Corp., whose range has been CA$0.10-CA$0.55 in 2024, making it a bonafide tax-loss candidate and a solid Buy as we speak."

Ballanger continued, "Of the bigger names, Newmont Corp. (NEM:NYSE) is down from US$42.50 earlier in December to US$37.64, with a 2024 range of US$29.42-$58.72. It is getting pitched overboard with ferocity this week and will probably continue until December 30."

"Also suffering the demise of the Senior Gold Miners is Barrick Gold Corp. (ABX:TSX; GOLD:NYSE), whose range is US$13.76-$21.35 so at the current price of US$15.51, it too is getting pummelled by portfolio managers not too keen on having it show up in the January statements."

Jeff Clark

In Paydirt Prospector, Jeff Clark wrote out a list of tax loss candidates. While Paydirt is behind a paywall, Clark was kind enough to share some of these candidates with Streetwise Reports.

The stocks on his list were:

1. Aero Energy Ltd. (AERO:TSXV; AAUGF:OTC; UU3:FRA)
2. Banyan Gold Corp. (BYN:TSX.V)
3. Brunswick Exploration Inc. (BRW:TSX.V)
4. Cosa Resources Corp. (COSA:TSXV; COSAF:OTCQB; SSKU:FSE)
5. Emperor Metals Inc. (EMAUF:OTCMKTS; AUOZ:CSE)
6. Pacific Empire Minerals Corp. (PEMC:TSX.V; PEMSF:OTCMKTS)
7. Trailbreaker Resources Ltd. (TBK:TSX.V; APRAF:OTC; KCG:FRA)

Brian Leni

Lastly, Brian Leni of Junior Stock Review shared his top three picks for tax loss selling opportunities.

These included:

1. Irving Resources Inc. (IRV:CSE; IRVRF:OTCQX)
2. AbraSilver Resource Corp. (ABRA: TSX.V; ABBRF:OTCQX)
3. Kenorland Minerals Ltd. (KLD:TSX.V; 3WQO:FSE)

Conclusion

The tax loss selling season presents a unique opportunity for investors to acquire quality stocks at potentially discounted prices. While many of these companies have seen significant drawdowns in 2024, particularly in the resource sector, several newsletter writers see this as a buying opportunity rather than a reason for concern. The recommendations span across various segments of the resource sector, from junior explorers to major producers like Newmont and Barrick, as well as emerging energy players.

As Bob Moriarty pointed out, while 2024 has been challenging for resource stocks due to capital flowing into cryptocurrencies and the broader market, this has created numerous opportunities in the junior resource space. The diverse range of recommendations from industry veterans like Malcolm Shaw, Michael Ballanger, Jeff Clark, and Brian Leni suggests there are opportunities across different commodities and market capitalizations.