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Stock Ideas Wall Street Stock Ideas Stock Colorado Goldfields (CGFI) Action: Long
Stock Ideas Wall Street Stock Ideas Stock Colorado Goldfields (CGFI) Action: Long 
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By Chris Johnson Dear Reader, Investors vote their approval and disapproval of the Fed by buying or selling stocks. So last week’s 25 bp cut to key interest rates seems to have disappointed, even though the writing of this outcome was clearly on the wall. It was interesting that the Fed announced a plan to... |
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| Stock Colorado Goldfields (CGFI) Action: Long |
| Monday, 25 February 2008 | |||||||||
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Now is the time to load up on shares of junior resource companies whose shares have the potential to give investors a much higher return on investment than the metal itself. If the price of gold futures increases by $500 per ounce (which could take months), those holding the metal will see about a 50% increase in the value of their investment. Nice return, but not nearly as impressive as the return on investment if Colorado Goldfields (CGFI) share price increases by a mere dollar per share. If CGFI share price goes up by only $1 per share (which happens sometimes in just days with these small-cap junior resource stocks; see Bear Creek Mining, for example), we’re looking at a potential return of nearly 150%! If it rockets up $2 per share we’ve got a bona fide stock superstar on our hands. But what could make CGFI go up by just $1? News, news, news. The company is potentially sitting on hundreds of millions of dollars of gold and silver at their properties in Colorado. According to their website, they’re getting close to the stage of production, which could come in the next 24 months or so. Any news regarding production coming online, or additional resources found could easily send the stock up a buck. In fact, the company is so small that any news that’s disseminated on a national level could bring huge attention to the stock. The more attention the better! Because gold prices are on every investors radar screen, the introduction to a new small-cap gold stock, like CGFI, to the investing world could cause widespread buying. Good thing we’re already all over it. Lets hope others get to see how potentially profitable this stock can be.
Regardless of the news out of CGFI, the price of gold is making small companies like Colorado Goldfields very attractive to investors. And we’re going to continue covering CGFI for the near-term with our eye on the prize. Look for more updates this week. Action: Long CGFI Good Trades! Small-Cap Fortunes This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
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