For those looking to invest a little bit of money, here are ten stock picks that we believe are going to rise quite sharply in the second half of 2016. These picks are based on our belief that the oil and commodities (particularly gold and silver) markets are going to continue their new bull phases over the course of the next two years.
As always, please consult with your financial advisor before making any investment decisions. Past performance is not indicative of future returns.
1. First Majestic Silver (AG)–>CEO of First Majestic, Keith Numeyer, is one of the most experienced in the business. Under his leadership, AG saw a great boom during 2011, but then subsequently fell sharply over the past five years. Now, with multiple mining assets and a nice early-year rebound, AG looks set to outperform.
2. Silver Wheaton (SLW)–>Silver Wheaton is the chief company when it comes to silver streaming contracts. They currently hold a number of silver streaming contracts with miners on various levels, and they produce a 1% dividend to boot.
3. Alerian MLP ETF (AMLP)–>For those looking to gain oil exposure, AMLP gives broad exposure to the Master Limited Partnerships (MLP) market, and it has performed extremely well since oil rose from $26/barrel on February 11th.
4. Provision Holding (PVHO)–>While Provision may be a penny stock, this penny stock has run for 34 cents and a 487% gain since February 4th. Provision is the first company to create 3D savings center kiosks that project 3D images without the need for 3D glasses. Their technology could become potentially very valuable moving forward.
5. SPDR Gold Trust (GLD)–>For those who want broad exposure to gold without having to store it, GLD is the way to go. We think the gold market is set to explode based on a US stock market recession and global crises, so this may not be a bad option.
6. Great Panther Silver (GPL)–>Although it is a junior miner, Great Panther has showed incredible resilience during silver’s downturn these past five years. Now, it has a strong balance sheet and is looking to join in on the rebound.
7. Dynagas LNG Partners (DNLG)–>This LNG oil company may be set to explode based on the oil price rebound. Plus it pays a nice 10+% dividend to boot!
8. Sunoco LP (SUN)–>Sunoco is a prime example of an oil stock that has fallen with the commodity, but the company shows strong financials, great resilience, and looks ready to rebound.
9. Exxon Mobile (XOM)–>Exxon may be the blue chip kind of oil stock you’re looking for for when oil rebounds (presumably) later this year to the ~$50 level.
10. Chevron (CVX)–>Finally, Chevron could be really hot with an oil rebound. Their financials are strong due to their size, and they are likely cheap relative to the total market right now, as well as to their fundamentals should the market rebound.