2013 Ticker Trax Virtual Vulture Fund
Stockhouse Ticker Trax is equity specific research (Canadian listed and market cap < $300 million) published every Monday to paid subscribers. Our free Friday column may feature companies previously featured to paid subscribers (with a minimum one month delay) or discuss topics of interest to the general investment community and relevant to overall portfolio management.
Two very helpful research tools as cash remains king
If you are looking for a very affordable tool to compliment your own research, you may want to look at a subscription to Stockhouse Ticker Trax for 2013. We publish the newsletter on Monday and along with a couple new stock picks each month, we also publish (once per month) our Virtual Vulture Fund and our Junior Gold Valuation table.
The Gold table tracks approx. 50 gold exploration companies on the TSX and TSX Venture with minimum one million ounces gold (43-101 compliant). This allows us to benchmark the sector and it also provides an additional research tool for those interested in the junior golds. By late January, I will also include average grade of a project - this is a very important number in a market where companies are struggling to finance.
2012 & 2013 Virtual Vulture Fund
The TSX Venture Composite Index (VIJX) was at 1485 on Jan 1, 2012, and will close the year near 1200 - down 19% for the year. This index represents the best of the TSX.V.
Our Virtual Vulture Fund (cash-rich small stocks) was started in May 2012, and closed the year with a gain of 7%. Nothing big but this included 90 companies and significantly beat the VIJX. That list also produced nine mergers or acquisitions.
The VIJX started 2011 at 2288 and ended 2011 at 1485 - a 35% loss. Over the past two years the best of the Venture exchange has lost 55%. Although we must also remember that TSX.V stocks peaked in Q1/11 after a 60%, six-month run in the latter half of 2010. This makes the 20% loss in 2012 more painful in my opinion.
It is also not surprising that many TSX.V stocks lost 50% to 75% of their value in 2012.
Obviously the average person cannot afford to buy 70 micro cap stocks so our table of cash-rich companies is intended as a research tool. It allows me to track and research companies for the newsletter, and it allows subscribers to screen stocks based upon their own interests (and risk tolerance).
For 2013, I overhauled our Vulture Fund as several companies have fallen below $10 million (minimum criteria) in net cash or liquid investments. I have the table down to 77 companies with $2.99 billion, or an average of $39 million per company.
I will publish this 2013 list on Monday, January 7, to paid Ticker Trax subscribers and then update monthly.
In addition to this weekend column and the bottom fishing research sent to paid Ticker Trax subscribers on Monday, I also provide free MicroCap alerts throughout the week. These are based upon News or Abnormal Price/Volume Activity on the several hundred stocks we track from our own research, brokerage analysts, or third-party newsletter writers.