Gold Company Picks For 2-11-2002

 

Bema BGO 84.3 US million market cap 53$US approx 16 million ounces gold potential
Golden Star GSRSF.OB 62 US million market cap 1.29$US experts consider holdings ex. valuable properties
National Gold NGT.V 4.4 US million market cap 36$anadian C approx 3.4 million ounces gold potential PLUS
Nevsun NSU.TO 14 US million market cap 87$Canadian approx 2.7 million ounces gold potential
NovaGold NRI.TO 64 US million market cap 3.45$Canadian approx 17 million ounces gold potential
Seabridge SEA.V 8 US million market cap 86$Canadian approx 6.6 million ounces gold potential

These market caps & dollar valuations are based on Friday's close, 2-8-2002.

Some of these represent the more SPECULATIVE of the junior gold mining companies.

These companies are recommended for purchase based on Friday's closing market prices 2-8-2002. In two weeks these companies may have accelerated to the moon and totally different companies would be recommended at that time. The market caps of gold companies are changing drastically and I recommend these as the BEST picks at the moment based on their Friday's stock price close.

This is NOT to say they will no longer be good picks one month from today. But one month from today all variables considering share price appreciation and market cap total change to where a totally different set of 6 gold companies might represent a better buy at THAT TIME.

These are choice picks ONLY for those individuals who believe we are at the beginning of a major gold bull market. Which I believe we are. John Doody, who publishes The Gold Stock Analyst, ALWAYS recommends purchasing a MINIMUM of 6 different gold mining company stocks for safety & deversification. Never forget Enrons do happen.

Some of these choices are based on total gold in the ground, management, and a couple of these picks are companies I believe will be promoted significantly by THE EXPERTS.

Remember that in ANY bull market ALL stocks rise in that sector, but these are companies that I believe may do well based on where their market cap closed last Friday. This is not to say there are not other good picks. There are a TON of other good picks out there right now, but these are the choices that I believe for a hundred different reasons may do very well in share price appreciation moving forward from their stock market cap 2-8-2002.

Only if you believe we are entering a significant gold market bull should these stocks be considered. These stocks are those I consider will do well moving forward from their present Friday stock market close, 2-8-02

THESE STOCKS REPRESENT A GOOD CHOICE IF THIS IS THE BEGINNING OF A MAJOR GOLD RALLY based on their market cap Friday and what I consider their market cap may be in 6 or 12 months!!!

In 6 and 12 months a TOTALLY different set of companies may present themselves AT THAT TIME as a better buy. These picks are those I consider will move the best in 6 or 12 months moving forward from their present market cap 2-8-2002.

Again, some of these are the more speculative of the gold companies, but that is where the real significant money is made. It is my personal belief that NO rising stock should be held for ever. Practical sound common sense dictates that when a stock increases in price and significantly increases by an amount equal to your original capital investment then the investor should at least take out a % of the total market cap and reinvest the proceeds in ANOTHER different investment or different stock that represents a good buy at that time.

This way you are getting some of your money out but still holding a balance to take advantage of any continuing stock price climb. It never ceases to amaze me how few of the "Internet & Technology" millionares (ONLY ON PAPER OF COURSE) NEVER sold a SINGLE share as they watched their paper share price ascend to the millions. And you know what happened to these individuals. They lost EVERYTHING as the great internet & technology boom ended.

You only have really made ANYTHING on the day that you SELL. PAPER IS ALWAYS JUST PAPER UNTIL IT REPRESENTS CASH OR GOLD UNDER YOUR MATTRESS.

* * * * *

A reader asked me why I began recommending a commodities broker in this letter. I have begun doing this because of the continuing & increasing volume of requests from readers to recommend a commodities broker familiar with the gold market. Gold securities, just like any other type of investment, require diligence & up to date information. More time than not a good broker will have access to good information that the conventional "mom & pop" investor will NOT find on the YAHOO FINANCE section of the Internet.

If you use a broker for the execution of a gold trade you are paying for an available source of information that may be obtainable ONLY by a broker and NOT available via your typical information Internet source. And think about this also. How many conventional idiot brokers who have been recommending Enron to their customers are even familiar with the gold market?

You get what you pay for & good, solid, up to date information is PRICELESS. Call a good commodities broker who has been studying this gold market for over 20 years. Plus, I go to church with Baird and I know his reputation for honesty is unquestionable.

Ultimately, the most important quality a good broker can provide is honesty & character. These are items of substance that conventional "mom & pop" investors are finally discovering through their observations of the Enron Debacle. Baird has been in the commodities business for over 20 years & I believe he knows his trade.

Baird Montgomery
Montgomery Commodities, Inc.
111 Smith Hines Rd, Suite H
Greenville, SC 29607
(800) 835-9482
Email: Montgomery Commodities, Inc.

"The real news, however, is the strength in the gold market, as money is clearly flowing from equities toward other investments, with gold enjoying a huge rebound as investor confidence in the capital markets wanes. Too (and the international media has covered this so voluminously of late that we've found it unworthy of our time, but apparently the news was not as widely understood as we had thought it was), the Japanese are moving into gold in a way we've not seen in a very long while, as consumers there fear the changes that shall be forced upon them on April 1st when the "insurance" on deposits in the nation's banks is ended. We shall have some figures on Japanese gold buying later this week, but suffice it to say that they are buying gold in UNPRECEDENTED fashion. It may even increase from here." Baird Montgomery, The Gartman Report 2-06-2002

 

 

David Vaughn
David4054@charter.net
2-10-2002