Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Saturday, February 10, 2007

Orlando, the Labyrinth, and The Tower of Babble

I went to Orlando for the Money Show on Thursday morning and just came back, so I hope I didn’t miss much. I had about 1,000 emails waiting for me in my inbox.

In case you’re interested…

Gold made a strong technical breakout on Friday. Silver has been leading gold higher, but gold had such a strong Thursday and Friday that the yellow metal might be taking over as lead dog. The time to buy your favorite gold stock is now. I have so many ideas I can’t even fit them all into my portfolios. And the ones in my portfolios are so packed with firepower they are Kiss-Me-Deadly. These are the golden bullets you want locked and loaded if we get hit by the monster shitstorm that Mike Larson and Martin Weiss (my coworker and boss) have been predicting.

And I’m adding more. I talked to a guy today, he’s chief geologist of a mining project in Latin America, they are starting production this year, already know they have half a million ounces of gold, probably 1.5 million ounces defined by end-of- 2008, mining costs are just $200 per ounce (probably even less, but I won’t bore you with why), TAX HOLIDAY for 18 more years, so they keep what they earn, back-of-the-envelope figuring tallies up to a $200+ million resource valued right now at about $65 million. It’s trading at under a buck a share, and that’s Canadian, which is, as we all know, monopoly money (LOL! Just kidding, my Canadian friends). I’ll probably recommend it to my Red-Hot Canadian Small-Caps subscribers next week – there are still some things I have to check out.

You think that’s good? I got stories like that left and right. Silver -- man oh, man, how sweet it is. Check out the weekly chart of a stock I’ve had my subs load up on for months … BREAKOUT! You think that’s the end? No. Man, Hell, no! My INITIAL price objective is 8.75, and it could go much higher than that (especially if silver goes to $20 this year, as I think it will for reasons I won’t bore you with). And you can buy this one in the US, too.

And uranium? I gave my presentation on uranium to a packed house. Considering that I got lost twice in that freakishly huge Pan’s Labyrinth of a hotel, I’m amazed anyone found the room, and best of all, my speech was very well received. The uranium story is simple: A tidal wave of demand threatens to swamp available supply. The uranium stocks I recommended in my first report are lifting off the launch pad, riding plumes of white-hot nuclear fire. The stocks in my second uranium report are still smoking on the launch pad. But you wouldn’t be interested in a near-term uranium producer with a resource valued at about 15 cents on the dollar, one that’s going to mine the stuff in about the most eco-friendly way you can imagine, by pumping baking soda through the rock and then sucking it out with the world’s biggest Crazy Straw. Yeah, baking soda. Welcome to the weird, weird world of In-Situ Recovery mining. It’s going to put Texas uranium mining back on the map. Nope, you wouldn’t want that stock. My God, what was I thinking burdening the buyers of my second uranium report with a turkey like that? Or maybe you DO want a potential moonshot like that. In that case, CLICK HERE.

I’m just saying, my friends, that if you aren’t investing in natural resources yet, consider it. Here’s a couple good mutual funds run by people much smarter than me:

World Precious Minerals

Global Resources

I'm not saying "buy 'em," I'm just pointing out that they're out there.

I also got to hear Newt Gingrich speak. He is a powerful storyteller – absolutely brilliant. As an Irishman I respect the storytelling tradition, and if you speak in public, and you have a chance to hear Newt speak, take it, even if you think he’s making it all up. Listen to Newt, and you’ll see where Stephen Colbert came up with the idea of “truthiness.” I liked his speech so much I bought the CD, and I’m going to study it for how to improve my own speeches. The Republicans need great storytellers like Newt – their storytelling is their strength (See Ronald Reagan – another great storyteller, and my dark-horse pick for the Republican presidential nomination in 2008, Mike Huckabee).

Speaking of politics, I found something political and delicious. You can find it by following this link: If Weiner was my rep, I’d vote for him. Where the hell has this guy been for the past six years?

Anyway, now I’m back at the computer at home, after reading my son Peter some Spider-Man comics (see below) and he zonked out dreaming of the Webbed One. See, Peter is just AMAZED that Peter Parker and he have the same first name. Coincidence? Peter thinks not! I had the comic book because, on the way home, I swung by one of the most amazing comic book stores I’ve ever seen – Sci-Fi City. I’ve seen better collections of comics, though I was able to get some good Spider-Man comics for Peter (yeah ... they’re for Peter … sure), but the rest of the store was chock-a-block with every kind of game, collectible, and downright weirdness that you can imagine. Half the store was devoted to people busily playing card and miniature games. And this place was busy. Many people coming in with their kids– like me, getting them started in geekdom early.

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