Reprinted from Bull & Bear Financial Report VOL. 26 NO. 06 • Sept.-October 2014 By KC Grainger & Bob Pellerin* “True market makers are a thing of the past and this has a huge impact on the small cap mining stocks’ price movements…old support levels are not support anymore.” That is what I wrote eight years ago for the “Bull and Bear” and it still holds true.

I want to emphasize that we are not short sellers and we believe that investors should always be invested in the stock market. Our difference with the view of many others is that we believe that profits should be taken and at all times there are numerous stocks that have been hammered down in price and are quite undervalued that merit investment consideration. By the way, we are positive on gold mining stocks and hard asset stocks. We feel that we are in a bottoming formation in gold stocks; we like many of them as we feel the true bottom for gold is between $1200 to $1350. The downside risk in gold is far less than the downside risk in the industrial stock market.