Bob Moriarty of 321 Gold profiles two gold explorers, RJK Explorations and Winston Gold, that he sees as low-risk, high-potential stocks.
Gold and silver shares have had quite a ride higher since the 15th of December when the Daily Sentiment Indicator from Jake Bernstein called the bottom to the day. Anyone who reads my site knows that I am a contrarian. I loved gold in December because everyone hated it. But I’m getting a little nervous now because it’s getting a trifle too popular. The speculators are running up the spec longs in the COTs and I would be a lot happier if we had a correction for a month or so.
So I have been looking for some low risk, high potential stocks that are cheap now and would be even better if they went down. I found two that have just released excellent results and the market still doesn’t get it.
I wrote about RJK Explorations Ltd. (RJX.A:TSX.V) on the 18th of January and told my readers to look out for drill results soon. The shares were $0.15 then giving the company a $2.1 million market cap. I said it was cheap.
On the 7th of February RJK released results showing excellent results from three of the four-hole program including 0.5 meters of 36.84 g/t au in hole 17-01, 2.5 meters of 9.05 g/t au in hole 17-02 and 14.0 meters of 5.37 g/t gold in hole 17-04. Those are what you want to see in a drill program. In spite of those results, the company still has a market cap of only $3 million. Buy cheap, sell dear.
It’s still cheap but not nearly as cheap as it was then. They do have a 183,000 ounce gold resource already so ignoring the …read more