Tony Locantro, stock market commentator and investment manager at Alto Capital, shares his insights of the week with Proactive Investors.
This week, Locantro speaks about junior gold explorers and miners, observing that in general they are currently being undervalued by the market, despite sturdy fundamentals.
"Often the best time to buy a stock is when you don’t really feel like doing so. So these stocks have all been pretty much hammered in a lethargic spec market... It’s hard to get clients motivated to spend when these stocks look like lobster pots. So basically a lobster pot is a stock that’s easy to get into, impossible to get out," explains Locantro.
He continues, "it’s hard to buy a stock against the herd, and I think as humans we like to feel comfortable running with herd. So my strategy - or as I like to call it my best war stories - come from periods such as this when no one else is buying and I can pretty much pick up as many of these undervalued shares as I can... This type of market probably will go on ‘til mid to late July, and then we’ll start to see some action thereafter."
To find out which stocks Tony tips, watch our video interview.