Top Picks

Top Picks – Updated January 2, 2008

On this page I list my top picks. This page will change infrequently (about once every two or three months), so if you don’t want to read the entire site, just bookmark this page for a quick overview. Our top picks are listed below, and are subject to change at any time, as per our Investment Philosophy and Legal Disclaimer.

To make the portfolio easier to track, I present it in Excel spreadsheet format:

JDH Target Portfolio

Here’s what I attempted to do:

First, I wanted a portfolio close to these levels:

Gold – 36%

Silver – 19%

Uranium – 31%

Other – 6%

Obviously the portfolio is over weighted to gold, since that’s where I think the profit will be in early 2008, with uranium shares close behind. I am also keeping some cash on hand for opportunities, which is why the above totals don’t add to 100% (cash is around 8%).

Of the uranium shares, the 31% is made up of producers (5%), close to production (2%), advanced exploration (8%), and juniors (15.5%). The heavy weighting in juniors obviously increases the risk, but also increases the potential profit.

Next, I wanted a portfolio heavily weighted to the Canadian market. It is logical to assume that the Canadian dollar will continue to appreciate against the American dollar, so I see no point in holding U.S. dollar assets. Besides, I’m a Canadian living in Canada, so Canadian currency is of more use to me than any other currency.

Also, given the volatility I expect early in 2008, I don’t own 100% of everything now. Any stocks that I currently don’t own a full position in will be accumulated over the first two weeks of January.

Finally, on some of the stocks I plan to hold longer term, I may by them and then cover them (by selling near term out of the money options); this gives me a potential extra profit, with virtually no risk, since if the stocks immediately move higher I buy back the options and sell them farther out. Those stocks are highlighted in purple on the spreadsheet. I expect to be doing more covering on any upticks in the coming weeks.

How did I assemble the list?

I started by assembling a list of all uranium stocks (you can find a comprehensive list at and all gold stocks (a good list can be found at I then chopped these lists down to stocks trading in Canada, which is where I want to focus for currency reasons. Then, I took a quick look at the charts and recent news on Google Finance to chop the list down some more. I also consider what others, including Dines, Casey, and members of the Buy High Sell Higher Forum, are saying about these stocks.

Finally, with my further reduced list, I looked at charts, RSI, MACD and Money Flow Index levels to determine appropriate buy points and stink bids. This list is the result.

For the uranium stocks I also tried to determine who’s drilling and who isn’t, and where they are at in the production cycle.

It’s a long list. Most of the stocks I have discussed previously; over time I’ll post my thoughts on the new ones as time permits.

Is this a perfect list? Obviously not, and no doubt it will be refined as we go on.

Do you think I’m crazy? Post your thoughts on the 2008 Predictions section of the Buy High Sell Higher Forum, or in whatever category you want.