I Have A Position In These Two Small Cap Stocks – Mike Swanson (04/18/2019)

I own lots of stocks and I share trading alerts and new picks with my private Power Investor members first, but today I want to share with you two small cap stocks that I own.

If you listened to the interview I did with Jim Goddard this week then you know I believe that the small cap junior mining world is becoming a sweet spot for stocks.

The first I have a position in is American Pacific Mining, which trades as USGD on the Canadian CNSX and in the US as USGDF. It has a market cap of roughly $11 million in US dollars so its a small cap stock.

The company holds the rights to explore and mine the Tuscarora Gold Project located in Nevada and started to drill the property last year with some promising results reported in June and August.

To get the full details of the company check out this article about it in the industry journal The Northern Miner:

American Pacific grows Tuscarora property near Elko, Nevada – The Northern Miner

Now here is the chart.

As you can see its been going up since it bottomed in December. In fact its gone up almost six times in price since then.

Yes this has been a fun ride! Yes, I know that stock market bulls are excited about the S&P 500, but this stock has gone up six times in value as the S&P 500 has come back to make its rally look like the action of a snail! You beat the market by being in things that go up more than the market does.

But this week the company announced some very interesting news.

And that is a joint venture with Oceana Gold, a mid-tier gold producer, worth $10 million to develop Tuscarora together.

With this news American Pacific no longer will have to go to investors to raise more money anytime soon. It means that the industry is taking notice.

That’s how I got involved. I actually bought this stock in a pre-IPO offering before it started to trade and have been a shareholder now for over a year.

The CEO of the company, Warwick Smith, is the real deal and has been a part of many successful deals over the years and on that basis I put my money down.

The thing with mining stocks like this though is that they can only go up when the word gets out on them. Inside this recent announcement is two items that really got my attention in that regard.

They did a consulting agreement with Ken Ameduri of Future Money Trends, who specializes in online media. You probably have seen him all over youtube. And they announced a similar deal Capital Pearl Investments.

Both parties are getting some cash and shares that become trading in July for their services.

So I will be curious to see what happens with the stock between now and then. I expect these guys should get the word out.

Personally, I just bought the shares pre-IPO and didn’t give any special deals or promises. I just bought mine like anyone else.

Because this is small cap stock with a market cap under $100 million I am placing myself on a self-imposed trading blackout period on it for the next 30-days, ending on May 18, 2019. I will not buy another share of it or sell one either until that date passes. I’m not sure now what I will do then, we’ll just see what is going on.

I’m not telling anyone to buy this stock right on the open today. After the run-up and recent drop I’ll be curious to see if it can form another consolidation base above 20 cents to launch another big run off of. If it lines up right in a few weeks the potential pattern could lead to big rally.

Another stock that I recently bought a private placement in is Timberline Resources, which also has exploration properties in Nevada.

I bought my shares at 8 cents with a warrant attached to them. I am putting myself on a 30-day trading blackout period with this stock too as it also has a market cap well under $100 million. However, my shares are not free trading until July so I couldn’t sell them today if I wanted to do so. I might hold them after that or sell them before the year is over – I don’t know right at this second what I will be doing months from now and you need to be in my private group.

But the stock has not broken out yet, but appears to be on the verge of doing so.

The stock is thinly traded, but has a fascinating consolidation pattern here with long-term resistance at 11 cents – essentially a stage one base. It also trades on the US OTC as TLRS.

The upper 200-day Bollinger Band is at 16 cents, so if it closes above 11 cents I’m looking for it to get attack – and if 16 is broken…..

There are many small-cap mining stocks simply going up now as this sector has come alive. The recent drop in gold has of course dipped the big cap miners, but most of the small-caps have simply ignored it and are trading in a world of their own.

If you want to find out about stocks like these when people in my private group do then you need to become a Power Investor.

We are also eyeing a major ETF that trades an average of at least 200,000 shares a day and has a market cap over $500 million with an almost identical trading position as Timberline is in now. We are talking about an ETF that has the potential to go out of a stage one base and into a new bull market. It is NOT a short ETF or tied to the VIX.

Get into the group for free by just grabbing my giveaway offer for Strategic Stock Trading.

I’ll even cover the cost of shipping for you for free!

To get it click here:


-Mike



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