Are You Ready For The January Effect?

Cobalt is a critical metal with no production in North America. Global Cobalt Corp. (GCO:TSX.V)(GLCBF) is working on a project in northwestern Ontario and has recently acquired a project in the U.S. Global Cobalt could be instrumental in meeting a growing demand.

I believe in commodities. If you do as well, then all these companies are worth putting on your radar screen.

Steve Palmer, founding partner, president and chief investment officer of AlphaNorth Asset Management: December, January and February are historically the best performing months of the year. There is no reason to believe the current situation will be any different. The TSX Venture index has been under severe pressure over the past few months, which has taken it down 30+% since August. It has recently been below the lows of the 2008 financial crisis despite an economic environment that is far better. I believe the current risk/reward is highly skewed to the upside for the TSX.V.

Several resource names that could rally nicely are Blackbird Energy Inc. (BBI:TSX.V), Sintana Energy Inc. (SNN:TSX.V), Talon Metals Corp. (TLO:TSX), and U3O8 Corp. (UWE:TSX) (UTREF).

Angelo Damaskos, founder and CEO of Sector Investment Managers Ltd.: We generally do not trade short-term technical volatility in markets but prefer to focus on fundamental value that is likely to be rerated over the medium term. Nevertheless, given the extreme selling conditions we have experienced in the last four months of 2014 in the energy space, there is a higher probability of a sharp rebound early in 2015. Historical review of previous corrections before the year-end in oil-related shares shows a seasonal pattern of recovery in the first quarter of the following year: The winter double-bottom pattern was observed in 2008–2009, 2006–2007, 2001–2002, 1998–1999, and 1993–1994.

We, therefore, advise our clients to increase their allocations to mid-cap oil producers for three reasons:

1. Extreme adversity against oil shares has led to solid companies trading at Price/Cash Flow and Price/Net Asset Value multiples last seen in the 2008 meltdown;

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1) JT Long conducted this interview for Streetwise Reports LLC, publisher of The Gold Report, The Energy Report, The Life Sciences Report and The Mining Report, and provides services to ...

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