Far East Capital Newsletter
Canadian stocks look much cheaper
22 May 2021

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Canadian stocks look much cheaper

In recent weeks I have been attending a number of virtual conferences in which there has been a predominance of TSX companies presenting. As a generalisation there seems to be much better value in these companies at present with many of them selling at half the valuation of equivalent companies in Australia. Maybe this explains the lethargy we are witnessing in the junior mining sector of the ASX. While many of our local companies have merit, we seem to have run out of reasons to commit new money to them, and when new buying fails to materialise, the stocks invariable drift lower. So, the quest now is all about finding new stories and jumping on any good news flow early.

Many of the Canadian stocks are silver specialists, and most of them have significantly better prospects than Australian-based projects. So, while they sell at high valuations in many cases, there is no direct comparison with the Australian companies. Mexico and South America feature strongly in the Canadian company portfolios.

There is one company in particular that is worth having a look at when it starts trading some time over the next few weeks; Tier One Silver. I'll try and provide more information in next week's edition. 

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