John Newell: Exciting Season Ahead for Mining Stocks
John discusses the beginning of Fieldhouse Capital Management and how he is focused on precious metals. He became interested in them back in 2001 and then again in 2013 when he saw Canadian precious metal companies outperform which led him to build a pilot fund around that thesis. The companies in the fund bottomed in late 2013, and he says, “some companies are looking very attractive irrespective of what gold does on a daily basis.”
He looks for stocks that are showing strong relative strength and those making higher highs and higher lows. They take several metrics into account when considering companies. Mainly they look for companies that have exceptional management with a good plan that can exploit tremendous assets. He says, “There are solid stocks that have done really well in spite of being in a choppy precious metals market.”
John has a library of historical books, and he looks for inspiration from individuals like T. Boone Pickens and Warren Buffett. Investors get better with age as experience counts. Investing is a life long learning experience you should never give up. You can never count companies out as sometimes they will surprise you.
He forecasts three targets for gold that we need to get through, but he thinks 1370 remains a formidable barrier. Investors should focus on companies that could merge and exploration plays. Find those that can make money at current prices and don’t concern yourself so much with future prices.
Mining is an essential part of our society, and it’s a value enterprise and pursuit. Just knowing and understanding the ambitions of people in the industry is a real privilege.
Time Stamp References:
0:45 – Beginnings of Fieldhouse Capital Management.
2:45 – Bottoming of the market.
5:00 – Companies that have outperformed.
6:30 – What he looks for in mining companies.
9:00 – Opportunites in the sector.
10:30 – The different aspects of the mining business.
11:45 – Role models in investing.
15:00 – Examine companies that make money today.
16:30 – Recites a Robert Service poem on gold mining.
17:30 – Why mining is exciting.
Talking Points From This Week’s Episode
• Never give up and always keep learning.
• Look for companies that outperform.
• Resistance at 1370 needs to be overcome.
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.