I talk about gold and silver a lot, but other metals are going up more than they are right now. In fact, they are not just going up, they are soaring. I’m talking about coal, zinc, copper, and aluminum. The latter three are industrial metals and when they go up in price it means the cost of producing goods goes up too (inflation), but so do the profits and value of the companies that mine for them.
To give you an idea of how much they are going up, check out this chart of the S&P GSCI Industrial Metals Index, which tracks the major industrial metals.
I own a lot of stocks in my main account, few of which are the popular fad stocks that they talk about every night on TV, and when I looked at it yesterday morning one of the stocks that was up the most in it was Vedanta. I talked about it as a great dividend to buy way back in a June post. I still own it. Take a look at the chart.
VEDL is a mining company based in India, with its main operations in iron ore, gold and aluminium mines in Goa, Karnataka, Rajasthan and Odisha. It also mines zinc and pays a 7.54% dividend, while trading with a P/E of 12.43.
Credit Suisse analysts upgraded VEDL shares with a prediction of a 40% price gain from here. Why not? It’s an easy way to get a dividend by aligning yourself with the giant inflation trend.
But where were these guys in June?
And where are they with Vendetta, which is a small cap mining stock with a major zinc property play. I made it my stock pick for this month and I think it is likely to do well too. In fact, small cap stocks tend to go up more than big cap stocks in a bull cycle.
VTT fell this summer as many small cap metals stock sold off and then turned back up over the past few weeks. In fact it stopped dropping in September while the GDX continued a little lower, which was a good sign of strength for it.
Vendetta trades as VTT on the TSXV and as VDTAF on the US OTC. You can find me post on it with more info about why it is a true value buy in my post on it here.
-Mike
Disclosure: Mike Swanson owns shares of Vendetta Mining. Because it is a small cap stock with a market cap of less than $100 million he has put himself in 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 (10/04/2021). 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 Vendetta Mining for a 30 day during the month of August, 2020. This third party paid Timingwallstreet Inc., $10,000 to produce and disseminate this and other similar articles and send traffic to them through paid advertising campaigns during the month of August, 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.
