Mickey Fulp: I Own Gold And Silver For This Reason

Maurice Jackson: Germane to equities, let's shift the focus on a space that you and I love to speculate in. And those are resource stocks. Is this the right time to be in the space?

Mickey Fulp: Well, I think so. This is an opportune time to speculate in resource stocks. And we've seen, when things start to emerge from a collapse like this—and we saw it in 2008, and early 2009—the first thing that goes up is gold. And if it progresses, then gold stocks follow quite soon after that.

Maurice Jackson: Do you favor the miners in the current environment, or junior miners?

Mickey Fulp: I don't favor miners. I think mining's a really tough business. So, my bailiwick is the junior explorers, oftentimes referred to as junior miners. But about one in 10 will ever mine anything. Most of them just mine the stock market. That said, certainly, the gold miners have done well and should continue to do very well, with high prices for gold and very low energy costs.

Even though oil has rallied—it's still at $34 a barrel now—we should also look at the juniors. The Toronto Venture Exchange index is up 60% from its low in mid-March. That's phenomenal. Every day, I watch the value of my junior explorer portfolio increase day after day, and I think I was up 37% in April, and I expect to be up even more than that in a month.

Maurice Jackson: Are there any that have your attention at the moment, and why?

Mickey Fulp: Well, I'm looking at gold companies, gold explorers; I'm looking at copper explorers and developers. A company that I currently cover and covered since, well, actually for three years now, we picked it at $0.65. It closed on Friday at $1.90; it's been as high as $3.14. It has catalysts coming. That'd be Trilogy Metals Inc. (TMQ:NYSE.MKT; TMQ:TSX).

I also picked up another copper company the other day that was at or near its four-year low. A lot of things have gone up, a lot of stocks have popped, especially in the gold explorer space, but there's a few that haven't, and there's a few copper companies that haven't.

So being a contrarian, I like to go in and look at stocks that have lagged, because I think what's coming is going to be good for the resource sector, especially in gold and copper. So, be a contrarian, try to find things that are undervalued and buy them when they're unloved and unknown, and unwanted, and undervalued.

Maurice Jackson: There's another company that you and I both like, and that is Hannan Metals Ltd. (HAN:TSX.V; HANNF:OTCPK). Talk to us about Hannan Metals.

Mickey Fulp: I am a very early shareholder of Hannan Metals; I participated in the pre-RTO [reverse takeover] financings. It's an exploration play, going into the Amazon Basin in northeastern Peru. They're looking for giant, sediment-hosted, copper deposits. It's frontier, it's grassroots, it's early days, but being a very early-on shareholder of that company, I watched it progress from a failed zinc project in Ireland; once that was not going to make it, they quickly shifted focus to this copper play in Peru. And I remain a dedicated shareholder of that company.

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Barry Glassman 5 months ago Member's comment


Kurt Benson 8 months ago Member's comment

Thanks for sharing your investment ideas with us Mickey Fulp.