Frank Curzio's WALL STREET UNPLUGGED Podcast

Don’t buy junior gold miners—until you listen to this

If you’re thinking about investing in junior gold miners, it’s a good thing you’re listening to this podcast first [9:50]. I was in Vancouver last week… and you won’t believe what I saw out there. I also share three names with great management teams and huge upside potential.

A new subscriber asks if I ever revisit old investments we’ve stopped out of in our portfolios [1:24]. Here’s what I need to see before recommending a company again…  

And for all you NBA fans, there’s major news involving one of my favorite players in the league. Here’s why I hope I’m wrong about him… Plus my pick to win the NBA Championship [5:44].

Transcript

Frankly Speaking | 59

Don’t buy junior gold miners—until you listen to this

Announcer: Wall Street Unplugged looks beyond the regular headlines heard on mainstream financial media to bring you unscripted interviews and breaking commentary, direct from Wall Street right to you, on Main Street.

Frank Curzio: What’s going on out there? It’s Friday, May 10th. I’m Frank Curzio, host of the Frankly Speaking podcast, we’ll answer all of your questions. Market, stocks, economy, sports, anything else you want to throw at me. I created this podcast to answer more of your questions that you all send me through my Wall Street Unplugged podcast, which I host every Wednesday.

Frank Curzio: If you want any of your questions answered, just send me an email at frank@curzioresearch.com. That’s frank@curzioresearch.com. Be sure to put Frankly Speaking in the headline. And you never know, your question may be the one I read on this podcast.

Frank Curzio: Man, some good questions coming in! As you can hear, I have a little bit of a cold today. Still doing the podcast for you guys because I love you. Man, one of these like, really nasty colds that just like knock the hell out of you. It’s almost like you have allergies, and I don’t have allergies, but throat’s swollen and eyes are swollen. I’m gonna drag this out, this way you guys feel really bad.

Frank Curzio: “I can’t believe Frank is that great of a guy! He’s doing a podcast when he’s sick!” Yep, that’s what I do. That’s what I do for you guys because I love you. Anyway, it’s not too bad, but yeah, a little bit under the weather, you can hear it.

Frank Curzio: So let’s get to some of these questions, guys. And the first one’s from Kevin. It says, “Good afternoon. I am a new Curzio Research subscriber and had a couple questions.” Thank you so much for subscribing to my services. He goes, “Is it generally a good idea to open a position on one of the stocks you recommend that has recently stopped out, given that I never had a position to begin with? Also, how do you decide to revisit a stock that you stopped out of? I assume, you just don’t put it on ‘Hey, I’m never going to touch’ list again.” And that’s just, thanks, Kevin.

Frank Curzio: So, it’s a good question, Kevin. Listen, once we stop out of a stock, listen it’s up to you, you can buy whatever you want, right? I mean, it’s not like, ‘Well, you, we don’t have to listen to the newsletter.’ You know for me, I want to educate you this way. You got to do investing on your own, the average person that buys the newsletter buys probably about six or seven of them. I mean, even expensive newsletters, they buy like four or five of them.

Frank Curzio: But it is, you know, for me, once we stop out, it’s, you have to limit your risk on your positions, okay, and it’s very, very important, because you’re going to be wrong sometimes. I don’t care how great you are and that’s what we do. We don’t really revisit situations too much, it’s rare, but sometimes we do and that’s if things change. And plus, what is the reason why the stock went down? If I recommended a great company that I like in September and the market crashed twenty per cent, it fell down, we stopped out. That’s something I’m going to revisit, right, because that’s like, you know, that’s a market event; it’s not a company-specific event. Or if, you know, my … A lot has to do with my thesis, if my thesis isn’t intact anymore, we stopped out, then I’m gone.

Frank Curzio: But if I’m still following the company and I know these companies well because, you know, I revisit a lot of these companies, not that I’ve recommended them all in my newsletters … but I’ve been covering stocks for twenty five years. And, there are stocks that, you know, change their business model, like IBM, right? Totally different company. I mean, Intel is changing as well, I know I didn’t like their investor day too much, I thought they’d be growing a little bit faster than that. It’s one of the large positions of my portfolio. So that’s down a little bit, but, you know you want to look at companies, you know.

Frank Curzio: “What’s changed? Why am I putting it back into the portfolio?” That’s kind of how, how I look at it. For you, if you want to continue to buy some of those positions, maybe that we stopped out of, I get that a lot, we don’t cover them anymore. And you know, people sometimes send me emails. I can’t give personal advice, like, I can’t give advice if [inaudible 00:03:38] Like if you send me an email, I can’t answer that email individually. I can take it and answer it to an answer it to an audience. We’re allowed do that.

Frank Curzio: So people say: “Frank! What about this stock? I got in later than you, and you stopped out, and I was able to stay in…” You know, maybe you subscribe a couple of months after … You know, hey that’s up to you. We’re not following it, I’m not gonna comment on it. I don’t comment on stocks that are not in the portfolio. But that’s pretty much how the newsletters work. You know, so we stay true to our stops, we want to limit our losses. Look guys, I’ve been doing this for a long time. I say that over and over again, it’s a formula that works for me, and letting our winners ride.

Frank Curzio: And look, we don’t really, we haven’t really stopped out on a lot of positions, which is really cool, you know the market is near high, even though we have all this tariff nonsense going on. It’s pulling back a little bit, but, you know when we do and we’re out of it; then we’re out of it. You know, then we move on. And it’s good because there’s no emotions involved, it’s one of the best systems that I know. It’s not perfect, of course, you could stop out of a stock and then it’d go back up again …

Frank Curzio: But, the alternative is, I see so many newsletters out there where they get caught up in a story or a stock and then it goes down thirty, forty, fifty, sixty, seventy-percent; and now that stock in your portfolio and even if it’s not from a newsletter editor, who’s an idiot for letting you take that much of a loss, but it consumes your life, right? Because that’s the thing that you’re focused on – this stupid stock.

Frank Curzio: “How can it be down so much? Wow, should I add more?” You probably added on the way down, it’s down even more. You’re like, “Man, what’s going on?” Everything looks okay. You see the news come out. Maybe it’s not that bad, but it’s still selling off. In the meantime, you have a list of thousands of other great companies that you could be looking at instead of wasting your time on a losing pick. And that’s the biggest reason for stop-losses. So, not that you’re asking about stop-losses so much but you’re asking what happens when we stop out of a stock. Would I revisit it?

Frank Curzio: So, very rare that we do but sometimes we do. It’s based on the thesis, it’s based on, you know, “Is it still intact? Why did the stock come down? Was it market-related? Something that really wasn’t company-specific?” But, you’re not gonna see too many of our stocks that we stop out of and make their way back into the portfolio. There’s just too many great ideas out there. So, hopefully that answers your question, Kev.

Frank Curzio: Next one is from Josh. He says, “Frank, who do you have winning the MBA Championship, especially now that Durant may be done?” I was watching that game live, man. Kevin Durant, I’ve seen it happen a hundred times, man. It’s crazy. Just, people blow out their Achilles. And they’re just walking and it looks like someone hit them with a baseball bat, right? Right in the back of the leg, right in the calf, over blow it. And, that’s exactly, he looked around, like somebody hit- I thought he was done. They’re saying like it’s a mild calf spring, he’s out of the series. I think he played his last game as a Warrior.

Frank Curzio: I’m a huge Kevin Durant fan. I’m a huge Kevin Durant fan. I mean, it’s so much worse than him, so many people, they’re getting, you know, just all the domestic violence and all the crazy stuff and the drugs, gun possession, and he just, he plays, he’s great. He does his own thing. People say: “Well, he went to a great team.” That’s his choice, man. That’s his choice. I played basketball, let me tell you something, it’s a lot of fun when you play with a lot of great guys who know how to play basketball. It’s lot of fun, win lots of championships. Because I can tell you, when you play with people that don’t know how to play, it’s horrible, especially if you’re the best guy of that team; you get triple-teamed every time. It’s not fun. It’s horrible.

Frank Curzio: Anyway when I look at Durant, you know, I hope that it is just a mild ankle sprain. I’m not too sure, but my team I think is gonna win it, is Milwaukee. I mean the Greek Freak looks great. They look awesome. They blew out Boston. Remember that Boston won Game One and then everyone’s like, “Boston’s gonna sweep them!” They can remember. Yeah, and they lost the next four. I mean they won the next four games by something like thirteen, fourteen points. They look really good, man. They don’t have a lot of weaknesses. They say, “Well, it’s all the Greek Freak,” and no, it’s not.

Frank Curzio: They got a good shooting team, they got a good defensive team. And they have that chip on their shoulder because no one’s giving them, you know, any chance- kind of like Toronto right now. But I don’t think it’s Golden State and I don’t think it’s Houston. I mean, Golden State, I can’t picture Durant playing. I hope I’m wrong and I hope he comes back. I just think that … Look, he’s a free agent next year and that’s gonna shake up a lot of things. Because who- you know, he’s guaranteed to go on any team, it’s gonna be great, but if it is an Achilles or something worse, which is kind of amazing that it, that it’s not. I don’t know, it’s just weird.

Frank Curzio: But, who, you know, you’re going to sign him but now you have to sign a great player and you’re not, you know, usually when you have an Achilles, again, I’m not saying that it is, they’re saying it’s a mild sprain. I just, when I saw it, I’ve seen it a million times and I cannot believe that he didn’t blow out his Achilles. If it is, you’re out usually for a full year. So he’s not gonna play all next year. Yet, you’re going to give this guy how much? Hundred and fifty, two hundred- three-, whatever you’re gonna give this guy? Hundreds of millions of dollars? Kind of sucks, you’re paying that much money for a superstar player that you’re not going have for a full year.

Frank Curzio: So it’s going to shake up the mark a little bit, and again, I hope he’s okay, but I just, Golden State … Look, they don’t have a great bench. I just don’t see them winning it. I think Cousins was really big going down. Like people are not, they’re not really talking about it. They’re really not that good of a bench. But I don’t know if they’re gonna make it out of the series with Houston. I think Houston’s going to be a little more motivated. Surprised they lost that game. They should’ve won that game. That would’ve ended the series basically. And the next game with Houston.

Frank Curzio: But I really like the Bucks. The Bucks look really, really, really good. So it’s … and, you know, next round, I think they’re a much, much better team than both of the guys on either side. I mean, you’re looking at Toronto and Philadelphia so I like the Bucks here. The Bucks are going to do good and, you know, listen, I’m praying for Durant, I hope he’s okay. I love him as a player, I think he’s great. The guy just goes out there, plays as hard as he can and I love it. I don’t know why people don’t like that guy but … and the media busts his chops all the time. I just, you know, he’s cool, I like him. He’s great for the game and hopefully he’s okay. But man, like I’ve said I’ve seen that injury. I saw it live, and he turned around like somebody hit him and he had no idea nobody was there and he just limped off. So hopefully he’s not as bad as I think he is.

Frank Curzio: Alright let’s take one more question. It’s from Boris. I like Boris. If I have a boy, which is going to be tough in my age. I’m going to name him Boris. I like Boris. It’s a cool name. So Boris asks, “I’m looking to increase my exposure to junior miners. Is there any names that you could share? Thanks for all you do!”

Frank Curzio: Boris, I would, listen, I’ve had these guys on my podcast that- Auryn Resources, Ivan Bebek, I mean that stock’s doing well. Revival Golds, has come down a little but I love that stock. Nevada Exploration, as well. It was a lot higher, it came down a little bit. These are three stocks, and I tell you, if you’re gonna get into junior miner sector, they don’t generate revenue. Be very, very careful. You know, put money into these stocks that you can afford to lose, and to, you know, you’re not even gonna blink an eye. But these are three companies I like because they have ten x-plus upside. And that’s what kind of upside you want to see when you’re taking that kind of risk.

Frank Curzio: These are all good management teams. These are all guys that are looking to develop these projects. They’re not looking to just, “Hey, we got these projects in. We want to sell them to somebody …” You know, a larger company. Or a major. Because when you have that, now you don’t have the intent to really develop these projects. Now look at the market. Because the majors all worry about acquiring each other. Right? Merging with each other. They’re selling off some of their non-core assets. So they’re not really buying junior miners right now. You cut that market off, now you have all these young generation of, you know, entrepreneurs, are sitting on these things and developing these projects saying, “Wow, I thought all these big guys and these majors are going to buy them.”

Frank Curzio: Well, they’re not buying them. And what happens? Well, it costs money to keep these things running, to continue drilling, to improve the project. And you know what, I just came back from Vancouver and I’m gonna tell you guys, things have never been worse. Things have never been worse. Capital has dried up. I talked to several, several companies when I was there, several investors, potential investors as well for our [inaudible 00:11:39] equity owners … I was there last week, there’s not a lot of capital around, guys. They’re giving away warrants, giving away anything, people are dying. It’s a horrible market, it’s starting to really hit them. They’re usually optimistic when I go there. Even last two, three years, I know it’s been a horrible market but, this last trip … It is bad.

Frank Curzio: These guys don’t generate revenue, they need money. Who the hell wants to invest in the mining industry? It’s one of the worst businesses in the world anyway, right? You got to blow up freaking mountains, blow holes and stuff, you know. It costs a fortune. I mean, even the biggest companies in the world, it’s eight hundred dollars an ounce it costs them to develop this thing and they’re selling it for twelve hundred. You know margins are little. And that’s for the best companies. But it’s really a horrible business and it’s just in a downturn. But there’s no investors, there’s no biz, nobody- everybody, everything, even good news that they report, even if some of these covers report good news it’s used as a liquidity event for people to dump their shares and say, “I got to get out of it.” Because they’re getting killed and everything else. They just have to liquidate everything.

Frank Curzio: You’re talking about Vancouver, one of the most expensive places to live, these people have very high-end houses. High-end lifestyles, and you know their company, think about the sector for … I mean, how long has it been? It’s been horrible. But this is the first time I actually went there where almost every company that I saw is looking for money. Looking to raise capital. Some of them could do it. You know, some of them have good reputations. But other companies out there, it’s a little scary, man. It really is. So just, you know, you’re probably gonna have time to buy these things. You don’t have to buy them right now. It’s a, kind of a buyer’s market for you guys. I’d wait, try to get into some of the financings, if you’re a credit investor. This way you get warrants, which are awesome. You probably get at least three warrants. But those are the three I like: Revival, Auryn, and Nevada Exploration.

Frank Curzio: So guys, thanks for bearing with me. Voice is a little off today. But I love you guys, had to get this podcast done. And that’s it for me. As I say this all the time, thank you for all your support. I really appreciate it. I’ll see you guys in seven days. Take care.

Announcer: The information presented on Wall street Unplugged is the opinion of its host and guests. You should not base your investment decisions solely on this broadcast. Remember: it’s your money and your responsibility. Wall Street Unplugged, produced by the Choose Yourself Podcast Network, the leader in podcasts produced to help you choose yourself.


P.S. You know about my Wall Street Unplugged podcast… And you might’ve heard me say that when we’re off the air, my guests will usually mention a few more favorite stocks. I break down the single best pick from each show… and send it out to my All-Star Portfolio members every Thursday.

Including yesterday’s “buy,” we’ve got eleven insider picks in the portfolio right now. And you can try this incredible investment tool today for only $4.95. Go here to learn more.

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