Common Stock Warrants

April 23, 2020 Collin Kettell Palisades Goldcorp Ltd. collin@palisades.ca     The Toronto Venture Exchange is a well-known proxy for the junior resource sector. The index has been in a decade’s long lull, which was further exacerbated by the precipitous decline in March of this year. I touched on this two weeks ago in an article titled The Bigger the Base, the Bigger the Bull. Get this… Since its peak in 2007, the Venture is down over 90%! With 55% of the Venture comprised of resource related equities, that means the junior sector (responsible for that drop) is off more like 95%! Find me another exchange that has performed as poorly since the ‘08 crash. You won’t. In fact, almost every index out there is up considerably over that time frame. Even the Australian Stock Exchange, which is heavily weighted towards mining, is up since 2008. But like they say, what goes up must come down. And less supported by the laws of physics… what comes down, must go up. For those closely monitoring the juniors, the past couple weeks certainly feel like the onset of that inevitable move higher. Take a look at the below chart, which shows a one-year performance of the Venture Exchange. Note – that “feeling of a bull market” emerging has occurred over a very short time frame. Now lets zoom out to a fifteen-year view of the index, and take a snapshot of what that “feeling of a bull market” move looks like in context … Continue reading →