Excerpted from the Adrian Day’s Global Analyst
We like all of the companies on our list, although we may be nervous about one or two. But whether rock solid core holdings or super-cheap speculations, they are on the list for a reason. There can, of course, be a difference between the very best companies to own and stocks that are at or near to good prices at which to buy. Thus, just because a stock is not listed as a current “buy” on the list does not mean it is not one of our favorite holdings (and the converse is also true, that just because a stock is listed as a current buy does not imply it is a favorite.
If I had to pick a portfolio of just, say, eight companies from those on our list it would be Gladstone Investment (or Capital), Nestle, Loews, Pargesa, Virginia, Franco-Nevada, Midland Exploration and Altius. But of course not all of these are at great prices for buying at the present time. But I would rather pay up for these than some of the others on our list, since we intend holding for very long periods.
Many Buys: Look for Corrections to Add
“Buy at or below” prices represent a price at which we think we might be able to buy in the near term. It may be worth more; if you do not own it, then you could pay up a little in many cases.
Most of the companies on our list at present are in the resource sector, and so, not surprisingly perhaps, most of the current “buy” recommendations are in that sector. But prices have been moving up, so don’t chase them.
The market, both resource stocks and the general market, have been moving up on increased hopes for additional Fed stimulus. If we get a further market rally on any stimulus later this month, we will be doing some selling. There is nothing we want to sell at or near current prices, however. The resource stocks in particular have a lot of leverage, and can move far when they do move, so we are in no hurryto sell, particularly in the downside is limited.
Adrian Day will present an educational workshop on the “Top Seven Low-Risk Stocks for the Year Ahead” Friday, Sept. 21, and give an expert view presentation on “The Resource Boom: Is It Over?” on Saturday, Sept. 22, during the Chicago Hard Assets Investment Conference.