Up 80% This Year
by Dr. Steve Sjuggerud
April 12, 2006
John Doody is not one to toot his own horn. But his Top Ten recommendations are up about 80% this year, so you need to know about him…
John is the editor and publisher of the Gold Stock Analyst, one of my favorite newsletters. We last checked in with him in mid-January, asking him about silver.
He recommended one stock to us… Western Silver (WTZ). When we spoke, the stock was trading about $13. As I write, WTZ is about $26 a share… a double in less than three months. (With the runup in WTZ, John has removed the stock from his Top Ten.)
So what’s John thinking now? I checked in with him this week to find out…
“It’s time to take some money off the table in some gold stocks,” he told me.
Although John thinks its time to take some profits, he’s not saying the bull market in gold is over…
“Far from it,” he says. But “we’ve come too far too fast,” and both “the market and the stocks need a breather.”
As an example of how crazy things have gotten lately, consider the shares of Gold Reserve (GRZ)…
John first recommended Gold Reserve to his subscribers at $2.02 at the end of 2005. As I write, shares of Gold Reserve are up to over $7 now! Jim Cramer gave a boost to Venezuelan gold stocks like Gold Reserve on CNBC recently, and it caused shares to soar.
John Doody is taking the opportunity to sell into “the Cramer effect” now… John took Gold Reserve off his Top Ten List also. He told me he’ll buy it back again below $5 a share.
Now that he’s taken such large profits, where does John see opportunity now?
One place is Apex Silver (SIL)…
Apex is building a huge, 22-million-ounce-per-year mine in Bolivia. It should start up operations by the end of next year. Due to zinc by-products, this mine will be “very profitable.”
John also says Apex has “a huge portfolio of exploration properties” that he expects “will be a dividend to shareholders at some point.”
I like John. He’s a no-nonsense guy. He started writing the Gold Stock Analyst a dozen years ago, back when he was an economics professor. His reason for starting it all? As John told me: “Nobody else was sizing things up the way I wanted to see it.”
Right now, the way he sizes things up seems to be working.
John Doody’s letter is the first place I turn when I want to size up the market for gold and silver stocks. With his track record this year, you can easily see why.
His letter is not for everyone, but if you’re investing a lot of money in gold and silver stocks, you have to check it out at www.goldstockanalyst.com.
Good investing,
Steve
Editor's note: Steve Sjuggerud is a regular contributor to DailyWealth, a free investment newsletter focused on the world's best contrarian opportunities. We write with a simple belief in mind: You don't have to take big risks to make big money with your investments.
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