Look at my Portfolio
Silver Stock Report
by Jason Hommel, Feb 1, 2006
Is the "Look at my portfolio" worth it?
Many people are now asking me if it's worth it.
IGMI was at $1.18/share in December. Today it closed at $3.12/share, up 164%
You could have gotten the name of IGMI if you were a paying subscriber.
Is that worth it? How about another stock pick?
I'm mostly invested in silver stocks, but let me tell you about a gold stock I just discovered that is so compelling I had to buy some. It expects to produce over 300,000 oz. of gold in 2006, at perhaps the lowest cash costs in the industry at under $60/oz., because they have copper, too. Market cap is about $450 million, and they have $50 million in cash. The drawback is that they are a little hedged, but they expect to be hedge free by mid 2006. If gold stays at $560/oz., and assuming they are hedge free, they will have a profit of $160 million, for a forward looking P/E of 2.8. That's much cheaper than Goldcorp, the other rather popular "low cost producer" with a P/E ratio of 40. If my new low cost gold producer stock rises in value to a P/E of 40, it will go up a factor of 14 times from here, and be at least another "ten bagger". And as you can see, the story is very easy to understand, the risk is low, and the stock is very liquid. And if copper and gold continue to go up, this stock will do much better that what I outlined, immediately, because they are now producing. I've never seen a mid sized gold producer in the last 6 years with a P/E this low.
P/E is "price to earnings ratio" where the price is the market cap, which is the share price times the number of shares outstanding (or fully diluted if you want to include all warrants and options). A low P/E is best, and a high P/E indicates an overvalued stock, or one that expects to have significantly higher future earnings. Typically, stocks on the NYSE today have P/E ratios about 21, indicating that NYSE stocks are overvalued. Historic low P/E averages for the NYSE are when the P/E ratio is around 6 or 7, giving a yield of about 14-16%--and a P/E that low is a screaming buy.
For the name of this stock, join the ranks of my 298 paying subscribers this month for $40. Billing recurs monthly, automatically, until you opt out. The best time to subscribe for 30 days if you just want to try it out, is around the start of the month. This way, you may get a fresh glimpse of two monthly reports.
At my web site, http://www.silverstockreport.com/
Click the gray "subscribe" link right beneath the green box on top.
I charge slightly more than the trading commission for one to four trades, depending on your broker, but does your broker give you information this useful?
I don't think it's unBiblical for me to do good in this way to those who give to me. And I think it's ok for me to ask you to do good to me, as well, by paying for it.
Galatians 6:10 "As we have therefore opportunity, let us do good unto all men, especially unto them who are of the household of faith."
I also don't think it's unreasonable to ask you to help me in this way, through asking you to buy the look at my portfolio. Some Christians bristle that I quote scripture, as I talk up stocks. But does not the Bible say:
1Co 9:7 Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock?It's not like I ask you to give me 10% of your income, as a tithe, like other preachers.
1Co 9:8 Say I these things as a man? or saith not the law the same also?
1Co 9:9 For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen?
1Co 9:10 Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope.
1Co 9:11 If we have sown unto you spiritual things, is it a great thing if we shall reap your carnal things?
1Co 9:12 If others be partakers of this power over you, are not we rather? Nevertheless we have not used this power; but suffer all things, lest we should hinder the gospel of Christ.
1Co 9:13 Do ye not know that they which minister about holy things live of the things of the temple? and they which wait at the altar are partakers with the altar?
1Co 9:14 Even so hath the Lord ordained that they which preach the gospel should live of the gospel.
It's not like I take up to 20% of your gains, like managers of hedge funds. (and isn't that easy money for them in a hyperinflation, when dollar denominated gains are guaranteed!)
And I may be doing you a better service than both of those "professionals" put together!
Maybe I should raise the price?!
Traders want good information, and I provide this look at my private financial information, which I am in no way obligated to provide, neither in law, nor in any scripture that I know. In fact, the Bible does counsel us to be wise enough to keep certain things private, and this may well qualify. Yet, I provide this information anyway, because I think it is important that you have it. In this way, you can know when I'm buying and selling, and what I own most of, and least of, to a reasonable degree. I'm not sure all investment newsletter writers are so candid. In fact, I know that most are not.
Matthew 7:15 Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves.
2 Pe 2:3 And through covetousness shall they with feigned words make merchandise of you: whose judgment now of a long time lingereth not, and their damnation slumbereth not.
Tit 1:9 Holding fast the faithful word as
he hath been taught, that
he may be able by sound doctrine both to exhort and to convince the
2 Jo 1:9 Whosoever transgresseth, and abideth not in the doctrine of Christ, hath not God. He that abideth in the doctrine of Christ, he hath both the Father and the Son.
2 Jo 1:10 If there come any unto you, and bring not this doctrine, receive him not into your house, neither bid him God speed:
2 Jo 1:11 For he that biddeth him God speed is partaker of his evil deeds.
Make sure that the newsletter writers to whom you subscribe are not "false prophets", or worse. How can a newsletter writer (of the Lord) ever suggest such things as bonds, which are so unbiblical? Or futures contracts, which are worse than gambling?
The foolishness of big money not recognizing the value of the world's remaining silver is utterly shocking to the rational mind. Clearly, bond holders are utterly deceived, and totally unaware of the situation. All my readers should understand and know that bonds were originally invented to suck the capital and money (gold and silver) away from the people. Bonds today are a paper promise to repay paper. What a con game! Are bond holders conservative and safe? No, they are fools! The bible calls bondholders usuerers, or extortioners! There is nothing safe about holding a paper promise to receive more paper when we have been experiencing hyperinflation for the past three to four years! Thus, extortioners get what they deserve, as God has said, we reap what we sow.
See my prior essays:
Inflation & Deflation During Hyperinflation
Freedom from Usury
And the fund investors who buy paper silver futures contracts instead of real silver are a very odd bunch of fools, for they should realize that nobody can deliver 800+ million ounces of silver that does not exist. It's like the paper longs are betting on the bank run happening, but they all are making sure they get at the end of the long line. Instead, they could go front and center, where there is an open window available where you can go and get physical silver, and nobody is there. Fools! If they know a bank run is going to happen, and they are actually willing to bet on it, then why won't they go and withdraw their money (silver) before it is too late! Amazingly blind fools--often following their blind leaders, or brokers, or analysts.
See also my prior essay, "The Moral Failures of the Paper Longs"
Excerpt from my article: Bible Verses on how to Manage Money
Buy low, and sell high! Buy when cheap, sell when expensive. One of the greatest stories of a transfer of wealth occurs in the life of Joseph, who was sold into slavery and taken to Egypt. He became the chief servant of Pharoah, who had a dream. Joseph, with God's help, interpreted Pharoah's dream as a prediction of seven years of abundance and plenty, to be followed by seven years of famine. With this knowledge of future economic conditions, the Pharoah put Joseph in charge of storing up grain during the years of plenty at low prices, and then he sold grain during the famine years at high prices, and ended up owning virtually everything in the land of Egypt. See Genesis 41
Ecclesiastes 3:1-3 To every thing there is a season, and a time to every purpose under the heaven:
A time to be born, and a time to die; a time to plant, and a time to pluck up that which is planted;
A time to kill, and a time to heal; a time to break down, and a time to build up...
If there comes a famine of silver, due to the silver shortage and due to monetary demand during a hyperinflation, I wonder how much silver investors will end up owning? It seems as if they sky is the limit if a real shortage hits.