Ivanhoe Mines Ltd (IVN.TO)

Stock is making an attempt to break out of a short-term period of consolidation. Levels of resistance are at $2.50 and at around $2. If it broke through $2 that would be bullish and would then probably target $2.50. If you are in the stock, stay with it and see if it breaks.

Has changed and reinvented itself multiple times and has transformed itself mainly into a precious metals, palladium platinum play in the DRC. This is a development situation, so will need a lot of capital to continue to drill and to build these kinds of projects. In a very questionable jurisdiction.

(Top Pick Mar 5/13, Down 57.67%) He has increased his holding substantially. He has never seen such an amalgamation of things that could go right. Believes this will be the poster child for a Harvard Business School case study for this market. He is willing to take political risk, which this has, rather than technical risk. They have the best undeveloped platinum deposit in the world. They have the best copper discovery in the world. They have to raise a lot of money to put them all into production, but their CEO is the best spokesman in the world.

(A Top Pick March 5/13. Down 67.73%.) Risk is that there are a couple of large shareholders who have been in the stock for a long time and had to sell stock. Doesn’t think the market has worked off all that stock. 3 projects. 1) Platreef, the most important platinum discovery in 80 years. 2) Kamoa, an extraordinarily important copper discovery and 3) Kipushi, the worst deposit, is the highest grade copper/zinc mine on the planet. These are all run by Robert Friedland, the most successful mining entrepreneur of his generation.

(Market Call Minute) Concerns about mines in South Africa.

(Top Pick Mar 5/13, Down 34.16%) Still likes it. He has the courage of his convictions. It is selling at a substantial discount to one of his deposits. An absolute conviction buy. Three world class deposits in one company. Hold it for 2-3 years. Likes the outlook for platinum and palladium. The best discovery in that field for 80 years. Really likes management.

The platinum commodity is his top pick on an ongoing forward basis. This company has discovered what is probably the best platinum deposit found in the last 100 years. Also, has an enormous copper discovery located in the Congo, a bad country. Also, has one of the highest grade zinc/copper deposits globally.