Gold vs. Silver Mining: Which Stocks Should You Own?

and negative [music] earnings per share, negative growth, zero sales growth. >> Do they actually make money? Do they make more and more of it? >> One of the things that [music] I can tell is already maybe going to separate this one from some of the other ones. >> When we shift there into the opportunities in this space, with the it being known that diversification should be part of one's portfolio and that it shouldn't just be all in this space. But, here at VectorVest we track, I think it's over 200 220 stocks in this one industry alone. And while we're not going to pull up, you know, the top-ranked stocks, I wanted to have our coaches take a look at a handful of stocks in this industry so that you know what to look for and what to avoid in a potential opportunity. Because that you brought up some great points, Steve, as far as interest rates. You know, that could hurt the the miners that are built on debt. Like they have to take out loans, but they're it could not really affect those that are have a strong cash position and don't have to fund things through debt or dilution. Uh so, we're going to take a look at the a few a hand-picked selection of of stocks. >> That means we've never seen them before. [laughter] >> So, uh first off, I wanted to start off with the graphs. Because I wanted to get the coaches to say, "This is what I'm looking for on a chart and so this is what you should look at. Uh have you guys point out what you like, what you don't like, if there's something missing that we should add, that we should look at." And we'll just cycle through a few of these and then we'll take a look at some of the specific VectorVest analysis that could help investors out and make a quicker, more informed decision. Sound good? >> Sounds good. >> so this one, uh what is this? CGAU? Uh so, hopefully you guys could see all the everything that's up on the screen. Let's first start off like, "What's the first thing you look at on a chart to have it draw your attention say this is a possible candidate one I'd be interested in. >> Well, the first thing I saw right away was the similarity to the industry graph. >> So >> Right, very similar. But now that I'm looking at investing in individual companies Um, I guess your question first of all was okay, I see a trend line break just like we saw in the industry graph, right? You've got some runaway gaps going there and now you've got this little island of consolidation at the top of the graph. Right, very similar to what we saw in the industry. But when I'm looking at the company, I'm interested in what I look for in companies. Do they actually make money? Do they make more and more of it? Do they have top line growth to go with that bottom line growth and how fast are they growing their earnings? So, I would add that information to my graph is ultimately what I'd do. But >> earnings >> Before we do that, let's see what Steve wants to say about just price action itself. Anything to add? >> No, I think that that was that pretty much sums it up. The one thing that I I would say is in relation to even the industry we're trading at or near new highs here where the average stock is trading below prior highs. So one of the things that I can tell is already maybe going to separate this one from some of the other ones. Just guessing, we'll see what happens. But is that it's actually trading at or near its highs and that's because if we look on the right you can see the RV and the RS. That's 165 and this is the great thing about VectorVest is you don't even have to I have no idea who this company is. I really don't. Um, Brian really did do kind of a blind >> [laughter] >> I'm I'm afraid to see what the next several charts are going to look like actually. Uh, cuz this is not a great start. But it's better >> You want to pick up >> [laughter] >> the Kinross, the Newmonts, the Barricks, you know, the ones that >> Yeah, this is not This is not one of our best miners that that's in VectorVest, but, you know, I'm kind of glad we're withholding some of that information to begin with. Uh but having said that, I do like that aspect of it. So, I know I knew actually because I've worked here for so long that this is a money-making stock for two reasons. It's at or near a new high, and then I can check the numbers on the right. Yep. Yep. They've got tremendous upside potential and it's relatively safe. Certainly compared to its peers, the mining segment. I mean, these are extraordinarily good numbers. That's all I'd throw in at this point. >> Me, please. >> All right, so let's add some things to the graph. Let's start with the earnings per share. Now, for those of you who aren't familiar, our models include earnings forecast for the next calendar year. So, that's baked into that EPS number. But what we're looking for is exactly what you have here. Nice, steadily progressing bottom left, upper right. Smoother the better. Uh earnings performance. They're making money consistently more and more over the year. Yeah. The next thing I'd add to that is put on the earnings growth right right below it. >> Beautiful. >> Is that growth accelerating? Well, yeah, you can see that it is. Right? So, uh the last piece of that, do you have sales growth on there? >> Oh, nice. I knew Todd would ask about sales, Joe. >> That's good. So, um are they actually selling what they're producing, right? So, this is true of any company. Are they making more and more money consistently, and is that performance accelerating? That's what I want to see. >> Yeah, the sales growth drives the earnings growth, drives the bottom line. Drives the price. >> Drives the price. >> All right, and just quickly for people at home, the you mentioned RB and RS, and I don't know if people caught it. When he said upside potential, which is a very quick that's what RVE is looking at, upside. And you mentioned this is RS meaning relative safety. How safe are risky a company is. >> Yeah, so basically high relative [clears throat] safety is how well you meet meet and exceed earnings expectations quarter after quarter after quarter year after year after year. And you know, that the companies that get up over say a or up where it is in the 1.2 1.25 range, that's considered very good. Anything over like 1.4 is excellent. So we're getting up into the upper echelon. And again, if you if you factor it into the mining if you factor it into the mining space, you know, that's where these are really good numbers as it as it pertains to just miners. Very very good numbers. And and the RV that's the growth engine I was talking about. That that's really looking at what Todd laid down there. And that, you know, growth rate is very and and EPS are very very heavily um featured in that indicator. So when they're both rising like that, you're going to have really high RV. >> Here's the next one. You want me to leave EPS growth rate and sales growth on? >> Sure. >> All right. What What do you like? What do you not like? Uh what do you Do you need any more information? >> No, so let's run the same drill, right? The the earnings per share and the growth rates are both accelerating. Beautiful. Sales growth pulling back a little bit here in this most recent quarter's estimates, but ultimately uh is that still double digits? Yeah, 30% or something. I can't read it from here. Yeah. >> 46. >> 46. So great numbers. What's the difference between this and the and the previous example? Well, the chart. Right? I I've taken out those prior lows, a little bit of a trendline break, but much weaker price action coming out of ASM than the former chart whose name I don't even remember. Right? But uh that's what I see on the chart. This one is still, you know, if I just generalize the slope of that price action, it's still weak to down. >> Yeah, I think Todd brings up a very strong point here. It makes [clears throat] me think of stocks like Adobe ADBE where they're like a ruler stock as the industry would define it, where their EPS or bottom line just goes up quarter after quarter after quarter year after year after year, and the the price goes woo woo, you know, it goes up and down the page in no relation. That's very rare. That's not something that you see very often, but it speaks to yeah, something's not quite right somewhere. >> [laughter] >> You know, and so you want to make sure A number one, as he pointed out, that the earnings and the earnings growth and the sales growth are all climbing up the page. When you got that, you got a perfect situation. But at the end of the day, some investors may just not know. Like who's ever heard of Avino Silver Mines? You know, you hear you hear of things like Barrick and Agnico and all these other companies. So this could still yet be one that's going to be discovered down the road. Okay? So I would say this two different ways. One, this kind of falls into that pitfall that a lot of investors and traders step into, and that is, "Hey, here's a great stock, great numbers, and it's not trading near as high as CGAU, whatever that is." >> I think so. >> Okay? I'd rather go CGAU cuz it's already doing it. And so many people think, "Well, it's at a high, so it's not going to go any higher." Absolutely couldn't be anything worse than to think that way. Um if if that's the way you think, then like I started buying Nvidia in 2018, okay? Nvidia's done nothing but go up. >> [laughter] >> Right? So, those are the stocks that you want to own. You want to want own the ones that are going up, the ones that are leading, the ones that are industry favorite. But but most importantly, now you have the objective data. You don't have to listen to the people on TV. You don't have to listen to all the personalities. You get the data right here, and now there's no mysteries. Like, you don't have to believe this guy or not believe this guy or what This is the data. And the data's the data. And and price needs to cooperate, and if price isn't cooperating, there is a global reason why. And and so, pick the pick the smooth steady rising price, smooth steady rising earnings, and accelerating earnings, Todd, like you said. That was That was a strong point. >> I guess one that >> Ah. Here's one. It's got uh it's going up. But it What is Do we need Is there anything different about this one compared to the others? >> Well, the first thing that strikes me is in this space Is that right in the in the mining space itself? There are some variables that won't show up in the data, like where are the mines? Are there any risks to those mines from, you know, nationalization, that kind of thing? How many deposits are estimated in the ground, which Yeah, so those considerations tend to get baked in. But there's no they're not going to be reflected necessarily in the data. So, if I was an investor and I find some companies have solid fundamentals, I might start looking at some of those other details that won't be in the numbers. >> Yeah. >> Uh looking at this, however So Okay, what are the What's the current earnings growth rate number there up on the >> Earnings growth is negative one. >> Well, that's something >> And climbing and climbing. >> So, it's getting less bad. It's less bad. So, that's a problem. Their earnings per share is What is that? >> Negative point 02. >> So, we're losing money. We're losing it at a faster rate, although it's slowing. The losses are slowing. That's the good news. And I don't have any sales? >> Sales is zero. >> Okay. >> Sales growth. >> Done. >> All right. >> What this What this tells me What this tells me is these people have a good sales It's good sales people. Not good Not good sales product. You know, and so this falls into that narrative trap. And if you look at the down the downward moves in in New Pacific Metals compared to the other ones, look how fast and sharp some of those drops are back to where they start from. Right? So, this is what happens to stocks who don't have the kind of earnings uh that the prior stocks do. Those prior stocks, they may go down, too, but they go down at a little bit of a slower pace than something like this will. So, you know, if you don't have any legs to stand on and you catch a bad piece of news, you can get hurt and for certain very quickly by buying things like this. >> All right, we'll take a look at the RV and RS closer >> The RV and the RS closer in just a second. I put this one up here. It's got an F at the end. Does that mean pink sheet stock? >> Fail. >> Yes, it means fail. But, this one a negative earnings per share, negative growth, zero sales growth, our relative value and relative safety are both below one. If you see something like this, is this also would you say a pass, or is there anything that you notice here where it's also moving higher, but some of the numbers are not there? >> Maybe the way I'd I'd try to ease the the pain here a little bit is we've been talking from the perspective of investing at this point, right? So, there are trading opportunities within that chart, right? It just had a breakout and retest of that of that prior resistance. Okay, are you here for just a couple bars or are you here for an investment? What's your objective for being in the trade? If I'm here as an investor, I'm not interested in companies that are losing less money. I want to focus on companies making money. >> Yeah, I mean, if we look at just the last couple of weeks on all these stocks, they've all gone higher. The whole key is what's going to continue for years and years and years and years to come and I would much rather bet on the proven dog like an Nvidia or a C G A U >> or some of the others that might be at the top of our list. >> than one of these. But, what you can do with one of these little jobbers right here, okay? These are These are what I call the fun money account. Where, you know, you can crack off $500 or some insignificant amount, you know, 5,000, whatever the number is. Uh and and and have a little bit of fun if the numbers are good. But, the problem I have here is the numbers aren't even good, right? So, here again, this is we've probably got a lot of resource in the ground somewhere and one day we're going to get to it. Just you wait and see. Todd, they're going to get it for you. >> So, would you say something like if say they see a chart like this, the fun money account would be a chart that looks like that, but the numbers that back it up like the high RV, high RS, earnings. >> high RS. >> And then the last one, uh this one is it seems like everything's negative on this one. Price is going down. Earnings growth rate, sales growth of negative 100. With this >> [laughter] >> this wouldn't even we I don't We didn't mention this before. Steve is more of a swing trader. He's our swing trader coach. Todd is our retirement successful investor coach from different lenses. Even worth this that wouldn't even make either of your list, right? That if they see numbers like this you as a swing trader I noticed you you only swing trade companies that have the high earnings high growth and I know you focus on those primarily in your position trading. >> Yeah, I'm going to continue to echo the same things. It was just as easy to make money with the top dogs. The top dogs that you're not even familiar with cuz in in VectorVest they're different than what you hear in the media anyway. I've never heard of Kinross when I'm looking at CNBC. You know, I've never heard of some of these stocks that are highly rated in VectorVest, okay? So, there's no reason to go after these situations because once again, if catastrophe strikes the space, these are the ones that are really going to get hurt the most. And so, when I look at this, a couple of things that we got to remember with minors, one is you know, they're not independent of the stock market either. So, like with with the underlying asset prices, they can move a little bit more independently. Whereas the minors themselves are still companies at the end of the day. So, they still have as you mentioned earlier, they've got situations where they've got to take on debt to get out resource and they've got to manage that debt and they've got costs. And and sometimes for these little juniors you know, you break a couple of drills, buddy, and you can be out of business. And nobody's willing to lend you the money to get that next drill to get that resource out of the ground. And Todd brings up, you know, a lot of times these little junior ones, they might just be single mines. And and and and all it takes is one, you know, uh uh combustion activity and that mine close up and then you're really you're really in it, you know, you really step in it. So, you know, I don't know all of these companies, but I do know who's the best and I do know who's the worst. And I already, you know, so hopefully you do too. Mhm. So, book price back on that. So, one of the things Steve said really poked out at me as you as you flip through those charts, hard right edge, all of them are in this little parabolic price spike, all right? Now, go back to the industry graph. The industry graph is representing the average values for all of these uh indicators we have for all 150 so stocks that are in the industry. So, it's the average for the industry. Well, that's the average for the industry, then the good is coming with the bad or the bad's coming with the good, right? The whole industry is moving, so in that regard, yeah, seems like there's an opportunity, but if you get past that initial rush of excitement that there's an opportunity there, where am I better placed? Am I better placed with the companies that actually make more and more money? >> Exactly. >> Or something a lot more speculative. Well, I'd rather go to something less speculative. >> Nice job. That's the best point yet. >> Yep. >> So, I'll end it with this. One of the benefits of Vector Vest is the analysis you could just get easily before you even have to look at it analysis on the chart. VectorVest These are the What is it? Five that we just looked at today. We've got about 200 and some odd in a list. And I know personally, I just look at the top VST, which is a combination of the RV, the RS, and our relative timing. Those guys will be at the top and then just this one list of the ones we looked at. >> Mhm. >> We've got some great analysis. >> a great example of that the extension of that idea. So, here you have a list of five companies. On the bottom, you can see the average values for all of our analysis for each of those indicators, right? We just went through the charts and we liked two of them. Shh. Right? So, all of them were had that same little price spike. But, three of them failed the analysis and the chart. So, let's buy the strength. And by the way, there are stronger candidates than what we're showing here, but buy strength. >> Yeah, even if the charts are equivalent. >> So, I buy the strength because the strength is what's going to have the staying power when when the um current pop starts to fizzle. >> I beat the S&P 500 and the Nasdaq and the Dow last year. It saved my life. This is good income for me and the coaching rooms are really good. >> [music] [music]