Erik Wetterling – Value Investing Versus Trading – Having A Coherent Strategy In Junior Mining Investing
Erik Wetterling, Founder and Editor of the Hedgeless Horseman website, joins us to share his perspectives on being a contrarian value investor in junior mining investing, versus the more common sporadic trading approach based on sentiment and momentum. We review, once again, that despite the higher gold and silver prices, and movement in the larger cap producers and royalty companies, that most of the junior stocks are still lagging and not confirming these moves higher in the metals.
Erik contrasts some of the valuations we saw pre-discovery in previous frothy periods of speculation in junior miners, and contrasts that to the present environment we bad news is severely discounted, and even good news only produces muted responses, if any. He continues to see unrealized value in juniors across the board, but especially in those companies that are continuing to derisk projects and that are conducting meaningful work, but are not getting rewarded for it. Eloro Resources (TSX.V: ELO) is one company he highlighted as an example that just put out one of their bear drill holes to date with little reaction.