3 Bargains…and More to Come

08/12/2011 12:30 pm EST


Curtis Hesler

Editor, Professional Timing Service

These sell-offs are very good times to pick up stocks at great prices, writes Curtis Hesler in Professional Timing Service.

Economic realities are finally beginning to sober up the stock market. Once the panic starts, sellers are rather indiscriminate about what they sell. It all becomes a rush for cash—and in that, there is an advantage for those of you aligned in the proper asset class.

The best place to be is still in tangibles. Short-term weakness is an opportunity to accumulate positions for long-term profits, but you must stick with investments advantaged by higher commodity prices.

Precious metals are primary because they are at the heart of the commodity bull market, and you need to stick to the heart of the matter. I think the big kids know what they want to buy during weakness, and you should do the same.

Gold is normally soft in August, and now is the time to set your sights on taking advantage of this panic for cash. Goldcorp (GG) closed at the support level I had predicted earlier in the month.

You should take particular notice of Central Gold Trust (GTU). Move the buy price up to $57.50. Put in an open order and see what goes of this selling panic.

We introduced Central Fund of Canada (CEF) recently, and it has not sold off to our buy price of $20.75 as yet. Another that is coming off, and has a good chance of giving us a fill, is Silver Wheaton (SLW) at $29.

These that I am mentioning are particular favorites of mine at the moment.

If you are particularly interested in income positions related to crude oil, it is time to be accumulating. Legacy Reserves (LGCY) and Linn Energy (LINE) are both trading under our buy price. AltaGas (Toronto: ALA) is back under $25, so one should take a pilot position.

I don’t expect the averages to take off immediately, but they are closing in on a trading low. A bounce is likely soon because the markets are oversold enough to precipitate an up move, even in the worst of markets.

The trick is to anticipate rather than follow. It is too late just now to be a serious seller.

The roller coaster should be heading back up again soon, but make no mistake about it...We will not see a new bull market come of this like we saw in 2009.

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