John Newell: Fund Manager Looking For Exceptional Moves From Exceptionally Run Companies; Triumph Gold

John describes his technical analysis methods for their Precious Metals Fund. They screen thousands of companies through a filtering process looking for those that show indications of strength with the potential for a technical breakout. He looks for that strength and then figures out the fundamental reasons behind it.

When researching companies you have to look at their jurisdiction, technicals, management teams, and the infrastructure. John likes to see a trigger point in the chart that brings on the potential for an explosive move upwards. Companies that can benefit the majors that need to replace their declining resource base. Some of these district-sized exploration plays will go through multiple owners and even then the odds of becoming a mine are quite rare.

Triumph Gold (CVE:TIG, OTC:TIGCF) looks good technically, and he has set some price targets. He says, “There has always been a belief that there was a resource on the Triumph site that can be expanded upon. The stock is going to move based on the drilling results and the excellent team that they have put together and what they will show us over the next fifty holes. It’s just a matter of determining the size of the resource. Soon there will be no upward resistance as there will be no sellers. Currently, it’s holding up well in a precious metals market that is tough to thrive in.”

Talking Points From This Week’s Episode
• John discusses his screening strategy for precious metal stocks.
• He mentions several companies that have passed his screening.
• Investors need to examine several important details about companies.

John Newell is Portfolio Manager for Fieldhouse Capital Management. John has 38 years experience in the investment industry acting as an officer, director, portfolio manager and investment advisor with some of the largest investment firms in Canada including Scotia McLeod, CIBC Wood Gundy and Richardson Greenshields (RBC Capital Markets). John Newell joined Fieldhouse as Portfolio Manager of the Global Precious Metals Program. Specializing in precious metal equities and commodities, John follows a disciplined proprietary approach incorporating equity research, analytical frameworks, and risk controls to evaluate and select long and short stocks primarily from the Canadian small and mid-cap coverage.