NEW YORK (
) -- As
keep rising investors are hunting for value in gold stocks at any price.
JC Doody, editor of goldstockanalyst.com, is up 150% year to date by buying undervalued mining stocks that have upside regardless of gold's spot price. Gold stocks have the potential to outperform the commodity by three to one. John picks 10 stocks for his portfolio that he thinks can double in 1 to 2 years.
John avoids exploration-only companies and focuses on companies that have proven and probable reserves. If
go higher, John says the best mining companies are those that have plenty of gold in the ground about ten times or more the annual production. As the gold is mined, the ounces become more profitable providing a big catalyst for the stock and big value for
. I asked John to reveal two of his recent winners.
: One company we like,
John also takes into account external factors like location and political risk but at the end of the day all ounces are the same and sell at the same price. John says that some of the biggest opportunities are not traded on U.S. exchanges.
: We cover North American miners and some of the best ones don't trade in the US markets. One of the biggest ones is
To buy a pink sheet stock you find on what exchange the stock is traded, check out the exchange price and then find the currency exchange rate between the US dollar and other currency. Then you can put an order in with your internet broker using the pink sheet symbol and a limit order. John says, "They're easy to buy. [It's] no different in buying any other stock, it just takes one more step to do it."