Is the small cap junior sector in rebound mode? Small moves are showing. News releases are not total liquidity events, as stocks actually end up on the positive for the day. Not big moves, but moves nonetheless. Word on the street is that Cambridge in Vancouver was beat up last week with less participants, but still on the slightly positive side. Being in Toronto last week, I witnessed firsthand the positive mood.

Things will come to a head in March/April as first quarter and year ends are filed, or more precisely NOT filed due to lack of funds. A large number of juniors are extremely under funded and something has to give. Mergers and acquisitions is one route that many may take, just to survive. Attrition is needed to free up the capital for the viable companies that will survive.

There are a lot of fantastic deals out there. Do your due and be patient.Good management is needed for the best to move ahead. Take care and have a great week

Cheers
Paul

Tax loss selling is here again! This is a great time to be taking a serious look at the Junior sector, not just commodity stocks, but oil and tech – amongst others. For the past two years I have compiled a list of about 100 companies, considered by many professionals in the marketplace to have been oversold and beaten down.

Well 2013 has pushed the junior market to record lows. So, what to do?? Now, more than ever, it’s time for serious due diligence on this sector. These stocks have reached levels not seen before, most of the time for no other reason than indifference in the small cap space. I have no list this year as there are too many excellent buying opportunities.

Remember one thing.. all my calls and research this year have focused on finding survivors, and the street tells me that Management is the key to moving forward. Money is obviously very important as well, but the smart money is counting on good managers to take companies through these horrendous times