Rick Rule of Sprott explains what he thinks will be the best speculative theme for investors over the next year and a half. He also shares his favorite commodity and a few he believes are overhyped.
Where should speculators focus in the next year and a half? Sprott’s Rick Rule shared his thoughts on the sidelines of the recent New Orleans Investment Conference.
“I would be extremely surprised if we didn’t see a new M&A cycle in the next two years,” he said at the event. “I think actually probably the best speculative theme in the next 18 months will be M&A.”
Rule explained that Sprott has assembled a list of 34 potential takeover candidates in the mining sector, and will be trying to narrow it down to 10 stocks or less. The goal will be to find companies with a variety of specific characteristics — importantly, he said, target companies will need to offer operating synergies to prospective buyers.
Looking at metals, Rule said that is favorite at the moment is uranium. “I would tell people as a commodity that they have to own that they have to own gold, and they have to own it for insurance purposes,” he said, adding, “[but] as a speculator, I’m focused on the uranium space.”
Rule continued, “I don’t know if uranium moves next year, or the year after or the year after that. Which troubles people. Time is important to many speculators. It’s less important to me … my suspicion is that a well-chosen uranium portfolio, five or six or seven juniors — good juniors, not the run-of-the mill juniors — over five or six years will show truly spectacular gains.”
Watch the interview above for more insight from Rule, including his thoughts on gold and minor metals like lithium, cobalt and vanadium. You can also click here to see the full New Orleans Investment Conference playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.