When markets go haywire and toss fundamental valuations out the window -- a condition that is currently assailing the miners of gold and silver -- I focus my Foolish shopping list on those stocks that are busy generating shareholder value that is bound to get priced in once rationality returns.
I have waited with baited breath for Brigus Gold's
It is worth noting, also, that assays from a further 95 drill holes conducted on the properties are still pending, including some deeper exploration that has already extended the known depth of mineralization at the 147 zone from 350 meters to 435 meters. As Brigus' vice president for exploration, Howard Bird, points out, those pending assays "will increase our resource area drill hole data by 37%." He added: "We expect the results from these holes will expand the resource and convert Inferred ounces to Indicated ounces in 2012." Importantly, this emerging gold resource is located close to Brigus' existing mining infrastructure at the flagship Black Fox Mine, and access into underground resources of the Contact zone is facilitated by an existing portal and ramp system left over from the historical Gibson Mine. In conjunction with this development, Brigus is considering another expansion of its milling facility to a respectable 3,000 tons per day.
In good company
Of course, Brigus is not alone in delivering news of significant value-generating developments that have failed to result in the sort of upside catalyst that investors might reasonably expect. Endeavour Silver
In an even more egregious example, metallurgical-coal-focused Cardero Resource
Although poignant examples of underappreciated achievements have seemed to multiply in recent weeks, my analysis of resource-related equities routinely uncovers standout bargains that are rendered clearer still when positive developments go under-rewarded. Back in October, I offered "5 Clever Ways to Get Some Gold for Free," and each of those picks related to recent or looming developments that I believe the market has clearly failed to rationally reflect. Paramount Gold & Silver
Although my top stock pick for 2011 has managed to outperform both the S&P 500
Screaming into the wind
Releasing news into a torrential marketplace can be a bit like screaming into the wind, and it can be frustrating for investors to watch long-awaited catalysts fall upon deaf ears and fail to move a stock as anticipated. But patient Fools know that the nature of the value generated is far more important to a stock's long-term performance than the immediacy of the market's recognition of same. In fact, as an investor I welcome the market's frequent failures to respond rationally to significant value-generating developments.