This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Miners Will Shine Again, Says Fund Manager

While the prices of many metals have fallen sharply since the Spring, Malcolm Gissen, portfolio manager for the Encompass Fund (ENCPX), expects a bounce in shares of Avalon Rare Metals (AVL) because of rising demand for the rare earth metals they specialize in.

"The demand for rare earth elements is spiking and prices have gone up eight to ten times in the last year," Gissen said. "So this is a company that will be vertically integrated that will do the mining as well as the producing."

The $21 million fund, which garners 3 stars from Morningstar (MORN), has returned 31% over the past year, better than 99% of its peers in the world stock category. Over the past three years, the fund has returned an average of 27% annually, once again outpacing 99% of its Morningstar rivals.

And despite the Japanese nuclear meltdown and fears about what that means for uranium prices, Gissen is not ready to give up on the metal, holding Texas-based Uranium Energy Corp. (UEC).

"We think that this company is going to be at the forefront of Uranium production and the demand for uranium production is increasing considerably faster than supply. There are a lot of uranium projects and nuclear power plants being constructed around the world despite what many people in the United States might believe," Gissen said.

The Encompass Fund also holds a position in Endeavour Silver (EXK - Get Report) despite volatility in the silver market.

"The company is in production and expanding through some smart acquisitions," said Gissen, adding that he sees the demand for silver outstripping supply.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AVL $0.37 0.00%
EXK $2.03 0.00%
UEC $2.60 0.00%
AAPL $132.65 0.00%
FB $81.91 0.00%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs