Positive vaccine news pushed many stocks higher, reports Chen Lin.
Wednesday’s Moderna Inc.’s (MRNA) encouraging vaccine news reignited the market. The “rush to trash” is on! Just like last time, investors are rushing into airlines, cruise line, hotel etc. I am not sure about this highly speculate names except I bought a little cruise line so I can claim “shareholder credit” in my future sailing. I bought cruise line in 2008, sold in the past years when they are getting expensive. I bought back small position so I can take advantage of the credit. One hundred shares will do, you don't need to risk too much. Valero Energy Corp. (VLO) is looking good here. They should report decent earning in a few weeks and re-affirm dividends. I bought back too early, but I was averaging down as low as 50 last week.
I sold more VBI Vaccines Inc. (VBIV). Now I am only holding a small position. I am a little disappointed the Canadian government didn't put any money into it. They are spending a lot of money on Covid-19. The way they are going, they may need money soon. It may be safer to own after a major financing, just like last two times. So far this year biotech rally has been quite narrow. If you own these hot Covid-19-related stocks you are doing great. Otherwise many stocks are simply not moving. If we are having a true break out in biotechs, the rally may likely broaden in the coming months. I am still holding a lot of these value biotechs that haven't moved much yet.
Copper is hitting a new high of the year. It is very good for miners that have copper co-products. I believe silver and platinum should be next. Gold Resource Corporation (GORO) reported nice increase of Nevada gold production. Its Mexican operation was impacted by the shutdown. But it should be back to normal in Q3. The Mexican operation has base metal co-product and should benefit from rising base metal price.
I was asked why my biggest winner in gold silver this year Vizsla Resources Corp. (VZLA) was not on my scorecard. It was a tiny junior; I usually mention the names while accumulating. It only came onto my official recommendation list after I feel comfortable this stock will do well in the long run. Cerro de Pasco Resources Inc. (CDPR) and American Pacific Mining Corp. (USGD) are examples (Both companies may have significant news in the coming weeks). As for VZLA, it moved too quickly before I could recommend it.
