I just got back from Panama last night, but I pulled together my final Hall of Fame list this morning. I plan on updating this list regularly, and keeping it as a feature at the bottom of every issue of Golden Opportunity.
First thing you need to know: none of the named companies in this Hall of Fame are buys! Many of them don’t even trade anymore – having been acquired. If you manage to find a company in this list with a matching ticker, please do not buy it. I’ve long since sold them out of the portfolio because I think the value is no longer appealing.
That being said: you can see that almost half of the 23 stocks in this Hall of Fame are currently in one of my paid portfolios.
In fairness to my paid readers, I can’t give you the names of these firms, but I can tell you that all of them are currently buys.
That means I believe they’re likely to soar much higher in the coming years – and that they’re still trading well under my fair value estimates.
For instance: the top performing stock in this list is up 2,241% since I added it to my GPIV portfolio, but it’s still selling for a 40% discount to my fair value target price. That means I think this stock could end up being a 3,600%+ gain based on the initial purchase price. That’s a 36-bagger – turning every $1,000 invested into over $36,000.
My target price is not what I think the stock should sell for based on my personal beliefs or preferences: it’s based on the future cash flows I estimate will flow to the company in the coming years. I update these valuations based on my analysis – which comes from nothing but hard data. It’s math, really.
The exciting part is: we can (and do) see mining stock prices soar past fair valuations. That’s called being “overvalued” – and we’re nowhere close to seeing widespread overvaluations in gold stocks. In fact, out of the 50+ companies I cover in my paid services, NONE of them sell for more than fair value. Most are 50% or more undervalued…
The day will come, of course. But we’re just not close yet.
As I mentioned early this week, you’ll notice some trends in this list.
For one, there are only a handful of royalty firms in the HOF – and they’ve all been acquired.
During a gold bull market, royalties tend to lag the miners, but over the long haul, they are the real value generators. We’ll eventually see big royalty firms in this list – but it will take some time.
The other trend: almost all of these stocks are OTC. I bring this point up again because I know some investors shy away from the OTC.
That’s a good instinct. Most companies (and most gold stocks) in the OTC are total trash, to put it mildly. I’d use stronger words were this not a family publication. Something like 1 stock in 1,000 in the OTC is a real company with a future beyond investor relations schemes.
But I’m not buying just any OTC gold stocks – I’m buying the best of the best. Out of the hundreds of gold stocks out there, I’m sticking with the 1%ers.
You can do the same – any brokerage account should allow you to buy OTC stocks. If yours doesn’t, then you need to switch brokerages.
The takeaway: if you want to own one of the current HOF stocks (which are all buys right now) you can check out my lowest price service here:
Golden Portfolio IV: My Lowest Price Service
Best,
Garrett Goggin, CFA, CMT
Lead Analyst and Founder, Golden Portfolio