If you are feeling as low as your stocks have gone here is something that should perk you up!
The Securities and Exchange Commission (SEC) is relaxing its rules for investments in foreign stock markets by US investors. Under a proposal being prepared by the SEC, stock exchanges outside the US will be able to provide direct trading access to US investors through US-based brokers for the first time. This will greatly improve appeal, exposure and liquidity for many junior exploration and development companies traded on the Canadian stock exchanges.
In the past several months, valuation levels for large and mid-size producers have increased. On the contrary, junior exploration and development companies have actually gotten cheaper in this time period. The valuation gap between producers and junior exploration companies is the widest it has been in years. Capital-rich but resource-hungry producers will not miss this opportunity.
A takeover frenzy is coming and it will push exploration and development stocks much higher.
Boris Sobolev
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