Issue link: http://resourceworld.uberflip.com/i/423464
24 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 5 Try looking on the last page THERE'S AN OLD ADAGE that investors should invest in companies when articles on them first appear on page 15 of the newspaper and then sell when the same articles start to appear on page one. A newspaper is thought to be a good barom- eter of public interest in that particular investment. A recent example of this phe- nomenon was the rise and fall of investor interest in the new medical marijuana (mmj) stocks recently appearing. Most were trading quietly early last win- ter as they announced their intention to enter the new medical marijuana field, but gained in price and volume until they blew off in a feeding frenzy a few months later as more and more articles covering mmj appeared on the front page of many publi- cations. Then, the value of the mmj shares dropped accordingly when articles on mmj abated. I use this analogy to draw your attention to the current sad state of media coverage for almost anything related to junior resource companies, other than to say that they are trading at multi-year lows. And make no mistake, they certainly are. As I write this piece the TSX Venture Exchange has just bounced off of a record low of 747, and is down by over 25% from above 1,000 just one month earlier. This current low takes out the lows of the Venture's predecessor exchange all the way back to 1999 when gold bullion was just US $275/oz, crude oil was about US $10/bbl and copper had a hard time holding US $0.50/ lb. Think of it – junior resource stocks are currently trading cheaper than when the price of their underlying resources were at record lows some 15 years earlier. No won- der there is a lack of media coverage, and for that matter, investor interest. But if you still believe, as I do, in the future of this sector, then these extreme lows also mean multi-year buying oppor- tunities, and historic seasonality suggests that the last quarter of the year usually pro- vides the best of these opportunities. The key is to ask yourself if you still have the stomach to be in the junior resource space and if so, search out companies in the sec- tors that appeal to you investment criteria. This may prove difficult as unfortunately, other than this or a few like publications, the general media now has a complete dis- interest in junior resource issues. (They are however, all too excited to let us know the screen size on the latest smartphone.) No, not only will you be hard pressed to find a junior resource story on page 15 of your local paper; I doubt you'll even find one on page 30. The junior resource stories are bur- ied very deep. My suggestion: try looking on the last page. n Rodney Blake is an Investment Advisors with Canaccord Genuity Wealth Management, a division of Canaccord Genuity Corp, Member- Canadian Investor Protection Fund. The information contained in this article is drawn from sources believed to be reliable, but the accuracy and completeness of the informa- tion is not guaranteed, nor in providing it does Rodney Blake, Canaccord Genuity Corp, or its subsidiaries, or affiliated companies, assume any liability. This information is cur- rent as of the date appearing in this article, we do not assume any obligation to update the information or advise on further develop- ments relating to these securities. This article should not be considered personal investment advice or a solicitation to buy or sell securi- ties. Canaccord Genuity and holdings of its respective directors, officers and employees and their associations, from time to time may buy or sell any securities mentioned herein. The views expressed are those of the author and not necessarily those of Canaccord Genuity Corp. Rodney Blake can be reached at 604-643-7567 or rod.blake@canaccord.com at t h e m a r k e t R o d B l a k e