How Good Is Your Pullback Game?

Feb. 25, 2021

by Gerardo Del Real

Last February, I sent a note to subscribers that made two points:

1. That [then president] Trump’s support of the domestic uranium sector was the first step in a multi-step dance that would spark the next great uranium bull.

2. That the base metals and lithium sector would rebound in the second half of 2020, but that I expected weakness while we received more clarity on the coronavirus situation.

Within two weeks — March 16 to be exact — uranium companies like Fission Uranium (TSX-V: FCU)(OTCQX: FCUUF) hit a low of C$0.10/US$0.07.

Fast forward a year later... and Fission just made 52-week highs of C$0.64/US$0.51.

The lithium names bottomed exactly when I expected them to, and uranium is sexy again.

People much smarter than myself like Michael Burry are now praising uranium’s potential.

Burry — of Big Short fame — recently tweeted, "If the government is going to spend $2 trillion, there is no better use than converting the US to nuclear. Dems can do it! Jobs + potentially limitless electricity... no greenhouse gas emissions #greenfuture NOW!"

Just today none other than Bill Gates said, “Nuclear has actually been safer than any other source of power generation, coal plants, coal particulate, natural gas pipelines blowing up. The deaths per unit of power on these other approaches are — are far higher.”

He went on to say, “There’s a new generation of nuclear power that solves the economics, which has been the big, big problem. At the same time, it revolutionizes the safety.”

Here’s a one-year chart of copper.

Copper, uranium and lithium stocks — and the related equities — have a lot of runway.

There will be pullbacks. There’s always pullbacks.

It’s what you do with those that determines the amount of zeroes you end up with in your account at the end of this inflation cycle.

As soon as I wrap this up, I’m on my way to send a check to a gold company for a private placement.

The price today is five times what I paid when I wrote a check earlier this year. It’s also 50% below its 52-week high.

If it works out the way I hope it works out... the next time I write a check for this company it’ll be at much higher levels.

Real rates are still moving higher, which means gold is still moving lower and that may be the case for several more weeks or even months.

That means you likely have an opportunity to buy the better names in the space at a substantial discount to 52-week highs.

I encourage you to get that done because gold — like uranium, lithium and copper stocks — will come back in favor.

This time next year, I’ll likely be telling you how I took advantage of the gold consolidation last February.

Let's get it!

Gerardo Del Real
Editor, Resource Stock Digest

For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Resource Stock Digest, Junior Resource Monthly, and Junior Resource Trader. For more about Gerardo, check out his editor page.

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