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Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Cheap Stocks?

Cheap is small and not too steep
But best of all cheap is cheap
Circumstance has forced my hand
To be a cut price person in a low budget land

Ray Davies

Confession time... the most expensive stock in my RSP is $1.85 and the vast majority of them are under $1.00. In spite of this seemingly wanton and reckless state of affairs I sleep pretty well most nights. None of the companies are dependent on exploration success to move their share price. They all have defined resources so these shares act as infinite call options on the commodity in the ground. I also hold quite a few warrants which may expire worthless but don't expire for 3-4 years.

For trading purposes, I buy more expensive companies (higher liquidity and lower commissions). Apart from the big guns (like those in the Mega Monster Metal Mayhem Portfolio) there weren't very many resource stocks over $3-5 when the bull market started.



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