My top stock pick for November is small cap gold exploration stock Great Thunder Gold (CNSX: GTG). It trades on the US OTC under the symbol GTGFF and has several things lined up for it that I think positions itself for huge success going forward.
You need to think about gold and the metals market. While the S&P 500 closed the month of October down 1.4% year to date the price of gold is up 23% so far this year and the GDX gold stock ETF is up 28%, to show that mining stocks are among the top sectors in the entire stock market. We have seen big gains this year in many big cap mining stocks and a lot of excitement came when it was revealed in August that Warren Buffett took a big stake in Barrick Gold, but the best small cap mining stocks have even gone up more than the GDX ETF has done and should continue to do so.
Gold and mining stocks ended their last bear market in 2016. Out of all of the stocks I have bought since then one of the best stocks has been Wallbridge Mining. I bought it way back in 2016 when it was trading around 10 cents a share. And as you can see from this chart it is now over $1.00. This is the type of gains that can happen in a small cap stock in a top sector of the market.
Wallbridge Mining was able to successfully prove up a major deposit and bring some properties in production over the past few years and now has a market cap of over $500 million USD. Meanwhile, Great Thunder Gold just got listed on the Toronto exchange a few months ago and is trading with a market cap of less than $14 million USD.
There are two thinks that link Great Thunder Gold to Wallbridge Mining.
First, both companies have had big investments from billionaire mining legend Eric Sprott in them. With Wallbridge that began a few years ago, but with Great Thunder Gold it just came fruition this past July. Sprott now owns over 15% of its outstanding shares for a sizeable stake in the company.
Secondly, Wallbridge has become a star of the junior exploration industry thanks to drill results of its Fenelon Gold Property based in Quebec. When a property like this hits typically exploration companies in the surrounding area benefit and others move in to take advantage of the situation. A big trend develops. Wallbridge itself bought out the shares of neighboring Balmoral Resoures this May to complete a merger.
Great Thunder Gold owns exploration properties sitting right next to the Fenelon Gold Property.
Now I no longer own Wallbridge Mining, but I’m into other stocks that Eric Sprott has invested in such as my top stock pick of last month, a silver play lining up and now Great Thunder Gold, where CEO Blair Naughty aggressively bought the right to properties around Fenelon and in October the company announced the start of a drill program.
On October 19, the company issued a press release stating that it “completed airborne geophysics surveys on its Northbound & Southern Star projects. The technical team has spent some time onsite to survey the projects in anticipation of its maiden drill program.”
‘Diamond drill targets have been selected utilizing the final interpretations of the airborne survey, along with coupling all known mineral occurrences, and in-field information gathered. The start of the maiden drilling campaign will first focus on the Southern Star project which is located less than 10km south of Great Thunder Gold’s Northbound Project and approximately 6.5km’s from Wallbridge Mining’s Fenelon Gold deposit.”
We are still early in this gold bull market and in past gold bull markets just about every single small cap exploration stock reaches a market cap that surpassed $25 million USD. With a market cap of still less than $14 million USD, I believe this stock is a simple double in the next twelve months and can do much more than that if its drill programs hit. The announcement of a drill program means that news flow will be coming to build even more anticipation.
Gold and mining stocks as a whole had been in a sideways triangle consolidation pattern that appears to be coming to an end. On Friday when the US stock market was down they were up, to show that they are again firming up against the broad market and appear to be getting ready for an end of the year rally. I believe now is the time to buy the best small cap situations in the sector. Check out the chart.
Currently the daily stochastics for Great Thunder Gold are oversold sitting below 20. At the same time on balance volume on the stock is rising, showing that there is more volume on the stock on up days than down days, a sign of accumulation.
You can access the entire corporate PDF presentation for Great Thunder Gold by clicking here.
Disclosure: Mike Swanson owns shares of Great Thunder Gold. Because it is a small cap stock with a market cap of less than $100 million he has put himself on a trading blackout on the stock and will not buy or sell a share of it for at least 30-days from the date of this post. Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which was compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for Great Thunder Gold. This third party paid Timingwallstreet Inc., $18,000 to produce and disseminate this and other similar articles and send traffic to them through paid advertising online campaigns for 30 days beginning November, 2020. This compensation should be viewed as a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. For more on trading risks read our policy statement by clicking here.