Market conditions in March made it impossible for me to release a new top stock pick for the month. As you know the market simply went into a historic meltdown, with many companies even as I write this still closed for business thanks to the global pandemic in action. However, the big drop in the markets has created what is now a sweet spot entry for the right stocks.
This brings me to Aftermath Silver, which became a top stock pick of mine for several months in 2019 starting in early November, although members of my private Power Investor group were first told of the stock in June when it was trading under 7 cents a share. The stock trades on the Vancouver stock exchange under the symbol AAG and on the US OTC as AAGFF.
First take a look at the chart.
As you can see the stock had a great run into New Years last year then pulled back and got drug down in March during the stock market drop. The stock has since stabilized and now appears to be turning up again. It is my expectation that this is the start of a run that will last into the summer and take the stock back up to where to where it was in January.
The company is a silver exploration company that 12 months ago was essentially just starting up as a blank check blue sky operation. It went through various investor financings, including one with mining billionaire Eric Sprott, in order to be fully funded. It has closed on two property transactions in Chile with plans to begin exploration activities on them this year once travel restrictions are lifted.
At the moment the company has a market cap of roughly $8.8 million US. In metals bull markets historically companies like this reach a base market cap of $25 million. So from a valuation perspective the stock is now cheap and the price action suggests that it is now turning up.
At the February Toronto PDAC the CEO of the company gave this interview with Andrew Scott of Proactive:
The company prepared a full PDF corporate presentation for the PDAC you can find here.
I am very bullish on gold and silver for not just the next few weeks, but for the next few years as the metals market has broken away from the US stock market. It is simply primed to benefit the most for the new Federal Reserve QE money printing operations and increased deficits that are starting to drive money in safe haven metals. Companies such as Aftermath Silver are the best way to benefit from this trend.
Disclosure: Mike Swanson owns a position in Aftermath Silver. Because it is a small cap stock with less than $100 million in market cap he is placing himself on a voluntary 30-day trading restriction period from the date of this post in which he will not buy or sell shares of it. After that date passes he may or may not trade it without warning.