Gerardo Del Real: This is the "Buy Low" Part of "Buy Low, Sell High" | Summary and Q&A

TL;DR

Tax loss selling is affecting the prices of junior equities in the resource space, creating opportunities in uranium and lithium sectors. Good management teams and strategic locations are key factors to consider when investing in these commodities.

Key Insights

• 👾 Tax loss selling affects the prices of junior equities, creating opportunities in the resource space.
• 💇 Uranium sector shows promise with supply cuts and increased demand from utilities in 2019.
• 😤 Good management teams and strategic locations are essential when investing in uranium companies.
• 📼 Lithium market has been oversold but is expected to rebound due to production challenges and limited quality assets.
• 👾 Mergers and acquisitions (M&A) are picking up in the resource space, driven by compelling valuations.
• 😘 Funding for juniors is scarce, but identifying quality management teams and investing during market lows can yield substantial returns.
• 🫡 Share structure and management's respect for shareholders are important criteria for investing in a stock.

Transcript

Read and summarize the transcript of this video on Glasp Reader (beta).

Questions & Answers

Q: Why is there a disconnect between the prices of underlying commodities and associated equities in the resource space?

Tax loss selling season affects the prices of junior equities, leading to the lag in their performance compared to the underlying commodities. This creates opportunities for investors as the prices of equities may not reflect the true value of the commodities.

Q: What are some recommended uranium companies to consider investing in?

Energy Fuels, Fission Uranium, and As ArgA Uranium are suggested companies with excellent management teams and past success. These companies are likely to have a great 2019 with the favorable set up in the uranium sector.

Q: Is it beneficial for uranium companies to diversify into other commodities like vanadium?

Diversifying into vanadium can be risky as it is a niche market. It is advisable to stick with management teams experienced in the specific commodity and keep investment strategies simple to avoid unnecessary complications.

Q: Besides uranium and lithium, are there any other commodities with investment opportunities?

Lithium, despite being considered "so 2016" by some, still presents potential opportunities. The scarcity of quality lithium assets and production challenges create room for growth. Advantage Lithium is seen as a potential takeout target in this sector.

Summary & Key Takeaways

• Tax loss selling is impacting the prices of junior equities in the resource space, leading to a disconnect between underlying commodities and associated equities.

• Uranium is poised for growth due to supply cuts, increased demand from utilities in 2019, and a limited number of uranium companies left.

• Lithium is experiencing an oversold market but is expected to rebound due to production challenges and scarcity of quality assets.