MIDZ: What Does The Upcoming Reverse Split Mean For Investors?

Bearish funds are an excellent way to profit from short-term panic as well as sustained selloffs and can help hedge one's portfolio. Because the Dow (DIA) and the S&P 500 (SPY) are up 12% and 10% year to date, one of the most popular emerging mid cap bear funds, the Direxion Daily Mid Cap 3X Bear Fund (MIDZ) is down a whopping 33% this year. As many mid cap stocks are up significantly in this bull market, as the DIA and SPY have been up in the last few years, MIDZ has degraded as it has been sold off because the investments made by MIDZ management led to losses. This has led to Direxion, a leader in providing popular alternative investment solutions, including other leveraged bear funds, to announce on March 1, 2013, that it will execute a reverse share split of the popular MIDZ Because....READ MORE

Silver Will Rebound

The last two years have given silver investors an excellent chance to buy on the way down as we've pulled back steadily since April 2011. This selloff has presented precious metal investors with opportunity buys for the long term. As the price has come down I have been recommending for some time to dollar cost average and/or pyramid down into silver and silver equities. My primary thesis, much of which is laid out in the background section here, is that the endless easy money policies from central banks around the globe have created a long-term tailwind for the various precious metals. Besides my favorite investment approach, physical coins and bullion, I have further recommended considering several gold plays, most notably the SPDR Gold Trust (GLD) and the iShares Gold Trust (IAU). I believe that although these are paper investments, they can still be profitable as all precious metals will benefit from inflationary actions by central banks worldwide in the coming years. While gold is a straightforward way to benefit from the currency debasement occurring globally, I believe that silver is poised to outperform in the next decade. Bottom line - I believe it will rebound because.....READ MORE

My 2 Favorite Silver Stocks, On Sale And Delivering Results

In light of the Federal Reserve announcement to continue to accelerate its debt-buying program, I believe that currency devaluation is a goal of the US central bank which is a buy signal for the metals and miners. The worries in Cyprus, namely the fear that this country's idea of raiding citizen's bank deposit accounts could spread throughout Europe, gives investors more reason to buy the metals. Further, I believe that inflation will pick up in the next few quarters. As such, with the recent weakness in the metals, I believe it is a good time to initiate or add to existing positions in the sector, particularly for the long-term investor. Further, while the aforementioned ETFs should perform well in 2013, individual stocks can offer substantially better returns relative to the ETFs and physical assets if selected carefully. With the recent sell-off, some of the best of breed silver companies are just oversold and are now opportunity buys for the long-term investor looking to initiate or add to a silver position. The purpose of this article is to review and highlight a few of my favorite stocks in the silver space that..............READ MORE

Almaden Minerals: This Stock Is A Leveraged Buy On A Gold Rebound

AAU is a mineral and precious metal exploration company working primarilty in North America. The company has several highly interesting exploration projects. Most notably AAU has the Tuligtic and El Cobre projects in North America (figure 1). These properties are largely at early stages of development but they represent significant opportunities for the discovery of large gold, silver, copper, lead and zinc deposits. One such example is at its site at Ixtaca, Mexico where significant discoveries were made in 2010. I like AAU's two-fold business plan. It is simple. First, AAU wants to....READ MORE

Buy Beaten Down Sandstorm Gold For Significant Upside Potential

Gold and silver have been volatile over the last few weeks, and have dropped for several reasons I detailed here. Ben Bernanke came in and saved gold and silver, giving the metals a nice lift with his dovish statements reiterating that the Federal Reserve would continue its massive quantitative easing program. This bolstered prices of gold, silver, platinum and the companies that mine these metals. The SPDR Gold Trust (GLD) is about 3.5% off its 6 month low of $150.84 and currently trades at $155.31. While there has been back and forth between many of my readers about whether a "real bottom" is in or not for GLD and the gold miners, at $1,600 gold or even at $1,500 gold, one stock will remain highly profitable in coming quarters due to its unique business model. Sandstorm Gold (SAND), in the span of just four months, has suffered a 41% decline from its 52-week high to touch as low as $9.06 per share in recent trading sessions. In my opinion, this stock has pull backed enough for investors to........READ MORE