Sean Brodick – Recent Trading Strategy For Major Resource Stocks and Where He Ranks Different Commodities
Sean Brodrick, Natural Resource Analysts at Weiss Ratings and Editor a few resource investment letters joins us to share his mega trend outlook for commodities and why this week he lightened up on some of his major miner stocks.
In the short term Sean is anticipating the volatility that always comes after a Fed meeting, let alone the number of other major central banks meeting this week. He also explains why he has more of a focus on larger resource companies. This ties into a discussion on development companies and juniors.
On a big picture scale we have Sean breakdown where he ranks a wide range of commodities.
Click here to learn more about Sean’s work at Weiss Ratings.
Yeah I think Joe Mazumdar was talking about last year being the year of the tiger in that MIF presentation. I took Wolfster at his word that this was the year of the wolf. If it’s the year of the rabbit then maybe it’s the year for the wolf to go hunting… ?
🤣🤣🤣…….the wolf never made the grade for the Chinese calendar. In fact the wolf is considered the enemy of mankind in Chinese folklore….. but you nailed it Ex. Going hunting for that rascally rabbit and having me a big winning year….TFSA is growing nicely. The one place the government hasn’t touched…..so far
This nostalgic tune seems appropriate then for the hunt for the rascally rabbit, as you are hungry like the wolf.
I could name that tune in zero notes…..😎
Haha! I would hope so… 🙂
I wonder who is going to take over Dolly, Hecla or Agnico Eagle. It could even see a third suitor. The Eagle likes Gold but Dolly has both and the gold component is starting to look serious. DT
As a Dolly Varden shareholder that has followed the story for a number of years, I think Hecla is still the prime takeover suitor, because they have all of the lands around in Dolly varden’s claims.
They’ve already made an attempt to take over Dolly Varden in the past on a prior management team’s watch, but that prior team did a poison pill financing to discourage the merger, because they were more of a lifestyle company at that point in time, and wanted to protect their salaries.
Back then in 2016 DV as a company didn’t have nearly as much drilling done showing the expanded potential at Torbrit or Wolf, like the new team under Shawn has done, nor did they have Homestead as part of the land package. Now the claims are finally all joined up under one roof.
At this point it would be a slam dunk for Hecla to acquire Dolly Varden eventually (but hopefully not imminently). They’ve been a little busy with their acquisition of Alexco and getting the Keno Hill mine in operation, but I could see Dolly Varden being next on the menu.
You are correct that this project and the resources growing through more successful drilling is getting it to the point where another major (like Agnico Eagle) could get interested if Hecla snoozes too long. Personally, as a Hecla shareholder too, I’d rather see it go to their portfolio… and HL celebrates silver a little more than AEM. It would just be nice to see that overall land package belong to Hecla one day…. but after DV has gone up for a while longer and from a higher valuation level.
America’s $31 Trillion Debt Is Getting Dangerous As Yearly Interest Crosses $500 Billion Mark
Caleb Naysmith – Tue, January 31, 2023
“The Federal Reserve has been the primary focus of the markets following the 2020 COVID-19 market crash, as generous spending bills have resulted in a massive increase in the overall money supply. To combat this, the Fed has continually increased interest rates to combat rising inflation. While this has been mildly successful, with inflation only rising 6.5% in December, it poses an entirely new challenge.”
“Since 2020, the U.S. debt has increased by $8 trillion… This brought the total federal debt to over $31 trillion. With the current Fed Funds rate at 4.25% to 4.5%, that puts the estimated yearly interest payment on the nation’s debt at over $575 billion for 2023. For comparison, the U.S. paid roughly $475 billion in 2022 and $352 billion in 2021.”
https://www.yahoo.com/finance/news/americas-31-trillion-debt-getting-191543033.html
A “Debt Doom Loop” Is Now Fully Engaged
Quoth the Raven – Jan 26, 2023
“Rivets are popping. We have seen this movie before. The Fed tightens, things break, the Fed reacts by opening the monetary flood gates and the cycle begins all over again.”
“There is always a lag effect between monetary policy and economic results. This current period reminds us of Summer 2007 when the Bear Stearns CDS funds failed. The GFC was 15 months later in the second half of 2008.”
“One very large rivet that has already popped is Great Britain as we described above. Another hugely important rivet that has not popped yet, but in our opinion is close is the US Stock Market.”
https://quoththeraven.substack.com/p/a-debt-doom-loop-is-now-fully-engaged
Regarding Stillwater……it’s in that catch 22 type of situation….they are way undervalued but need more cash….yes the warrants at .25 and .30 would bring $8M if the price gets over .30 but the .25 expire in May after getting an extension as they originally expired in November 2022 and the market knowing they want to get stock up to get them exercised before they expire I think works against them. Might be too many people waiting to see how the funding issue plays out…… or the story is just not getting out to the masses could be issue too.🤷♂️
The American public has a fascination with the stock market, but The Moms and Pops of this world are broke. When I go out and talk to people in the business world the first thing, they tell me is “everyone is broke,” they have no cash, “they are living a hand to mouth existence. Business people are more educated than the general public in economics 101, they have to be. When I start telling them how the debt got blown up and how we ended up with all this inflation and cap it off with the coming deflationary depression they want to know a lot more, but even most of them are left scratching their ear.
The problem as I see it is that the institutions and the financiers buy into the Private Placements, but it takes the little guy to move the stock price forward and then the herd will show up. If the public is broke it becomes a real problem to get a lot of juniors moving and hence the running of The Bulls. DT
Two of my relatives work at the biggest grocery chain in Canada in what is considered a rich enclave, but the problem of theft is everywhere. They see people stealing expensive items like cured meats, and deli cheese, and they dispose of these products at local restaurants. They tell me theft is endemic, most of the public is so broke that they use the self-check-out counters to scam the system. Even though an employee is watching them they can’t do anything because you would have to arrest too many people. The crash is coming only this time people won’t be so obedient as they were in the 1930’s. DT
Companies love technology because they see it as a labor-saving device not as a device that competes with humans for jobs. They fail to realize that technology can also work against them especially when the public loses jobs to AI, and there is an economic downturn. When Central Bank Digital Currencies are enabled as an inclusion device and a control mechanism, the downside which they don’t like to consider will instantly become apparent. It could be something as simple as “The Carrington Event’, where everything is knocked off-line by a solar flare, an EMP bomb, or foreign or domestic hackers. When the downside happens, it will be too late to consider an alternative. It’s like the rush to electric cars, it will take decades to properly implement and use wisely. DT
Hearing positive reports about Seabridge(SA) and Discovery(DSV)
Running of the bullish…t is what we have here.
Grumble, the lights are on but nobody’s home. LOL! DT🙄
Hmmmmm…. :0
Lake, you and grumble should play checkers in the old age home! DT
Look up passive aggressive.
With Stillwater Critical Minerals, yes they’ll need to cash up, and if they run, yeah those warrants may eventually cap the price, but that is short-term thinking.
Longer term, they are valued $46 million market cap and have $20 billion in gross metals value in the ground. That is one of the largest market disconnects I’ve ever seen, and surely their market cap needs to go up substantially to close some of that gap. Eventually getting to a several hundred million market cap or even $1B wouldn’t be a silly or unreasonable target, but it will take a couple years to get there.
My biggest concern is not for them to get capital, but instead, that they get taken over too soon before the resources they’ve defined get more fully appreciated. I want PGE to have time to get a solid rerating before a big boy comes in and scoops them up. There is little doubt in my mind that their critical minerals / battery metals project is going to be wildly important, economic, and sought after to develop into a mine. I’m still stunned that they are not getting a higher valuation for what they’ve already released as far as the updated Resource Estimate.
I have been concerned that the long term price cap on PGE was intentional as early on, PGE was proving up a great resource of valuable metals and price always seemed range bound. Suspicious if nothing else.
KTN, Kootenay Silver, falling through support.
I’ve been a buyer today.
Haha, I just bought some myself, the selling overhead volume has declined a lot this week.
I did a 6 month daily chart and it looks like the low today was off the middle tine of a fork. Maybe bullish IMHO.
These are fabulous intercepts of oxide gold put out from Nevada King Gold (SYL-NKG) at Atlanta. including, 2.88G/T Au over 67.1 M, 2.95G/T Au over 51.8 M, and 3.43G/T over 33.5 M.
https://money.tmx.com/en/quote/NKG/news/6983618248955158/NEVADA_KING_INTERCEPTS_HIGHGRADE_OXIDE_GOLD_AT_ATLANTA_INCLUDING_288_GT_AU_OVER_671M_295_GT_AU_OVER_518M_AND_343_GT_AU_OVER_335M
continue to watch gas go into oblivion. Pity anyone holding UNG and BOIL.
FedDay. Down again and is that because something magic is going to happen or just the sane old intervention. I guess since The Fed has put themselves in such a deep hole we have to all pretend they have credibility
Wonderful … Powell starts talking, he says nothing and my account drops some more. Nothing but algos trained to support the narrative of the “great void”. Should have invested in Wall Street Bailouts.
I dig the action. It wasn’t quite the drop I was hoping for but I still bought HL and SILJ this morning among others.
Yes. I got Dolly and Ridgeline back again. It doesn’t mean I am going to send flowers to The Fed. I still think someone should stand in front of their cars as they head home from work everyday until their attitude is similar to mine.
The Fed didn’t cause today’s turnaround with anything it said or did. It was the passing of the meeting that did it. Markets hate the uncertainty that commie rats bring to all things.
The more he talked, the more my account started to recover. Might even go green once he quit talking and left. Running out of things to complain about at the moment. oh well …. Onward and Upward!
Green …Ha! Who was that guy ? Get him back to the Podium.
According to Chinese Culture this is the year of the rabbit. This is not the year of The Wolf or The Tiger. LOL! The rabbit is a symbol of longevity, peace, and prosperity. The Bankers and the financial forecasters know all too well the state of the economy, but what they don’t know is what the herd will do next. Watch out for hesitation and the stock market to all of a sudden enter into a sensational phase. Ribbit, Ribbit! DT