As a contrarian investor I am always looking for undervalued and out-of-favor companies and nowhere is this more apparent than in the Precious Metals (PM) sector with the juniors and exploration companies and/or the stock warrants trading on those companies.
Dudley Pierce Baker – Founder of CSW in 2005
I cannot tell you that these companies have bottomed but I believe we are very close and serious consideration should be given to investing in a basket of companies or their stock warrants, if available.
The price of gold and silver will always influence the prices of the juniors but, in my opinion, we must anticipate a price move in advance, especially when we find oversold opportunities like exist now in many companies. When gold and silver do break out to new highs (and I think that could happen at any time) the price of many companies will increase by 50% to 100% almost overnight. I get it, catching a falling knife is not fun or profitable, but these juniors (those that I am interested in) are almost on the floor. Recently I have been able to buy shares at lower prices than the recent insiders are paying in the open market for the same shares. If they drop another penny or so, who cares, I am in for probably a two-year window as I see that gold could have a peak in early 2026.
Many people refer to me as ‘the warrant guy’ because I like stock warrants with the additional leverage they can bring over the common shares and because of the great databases that we provide for investors/subscribers at https://CommonStockWarrants.com. Our databases cover all warrants trading in the U.S. and Canada and in all industries and sectors, currently around 900 companies.
But let’s get back to the fun part of investing in finding great opportunities at great prices
Last week I notified my gold subscribers that I had increased my position in several miners. While I cannot give you the names of these companies without upsetting my subscribers, each has a story. One small gold exploration company I was able to buy for 5 cents and there are currently 3 insiders buying at 6 cents and this company has a major producer as a JV partner. So, I ask, where is the risk?
Another silver exploration/development company in which I increased my position at 8 1/2 cents (my average cost is now 9 cents) and we have several insiders buying as well as large holdings by some of the big investment players.
Another, gold exploration/development company with currently 5 insiders buying I increased my holdings at 13 cents, about the same price as the insiders. Again I ask, where is the long-term risk?
Another gold exploration company with many properties in Nevada has a major as a JV partner and currently has 3 insiders buying between 12 cents and 14 cents. Again I ask, where is the long-term risk?
One last one is a small gold/silver producer with properties in Mexico and Peru. This company had a private placement several months ago which included stock warrants will a 5-year life. To me, this is a gift and I have been able to accumulate several hundred thousand warrants with an average cost now of 6 cents. My gut tells me I will be selling these warrants upwards of 50 cents to $1 or move in the coming bull market.
I could go on and on but I think you get my message. I am looking for interesting opportunities for myself and for my gold subscribers on the cheap/selling near lows with great long-term potential and preferably with insiders buying or already having a nice position established in their company. If stock warrants are trading on any of these companies I would normally be buying the warrants, but if no warrants are trading then I buy the shares. No investors including myself should have all their money in stock warrants or options. The time factor comes into play and expires faster than you think, but a warrant in today’s market with a 3 to 5-year life becomes really, really interesting as you have time on your side. The average investor should probably only have a 10% to 20% maximum in long-term stock warrants, including myself.
If you are looking for other opportunities with companies with stock warrants in other sectors, subscribers have access to all of our databases where you can search, sort, and filter for anything you want.
If we can assist you with finding some great opportunities, I encourage you to join us soon.
I will leave you with some of my winners through the years
