Canada has a competitive advantage in the sweepstakes to provide the emerging world with resources. The Milken Institute recently ranked Canada the best place globally to raise capital. That is a significant endorsement of the Venture Exchange. A strong loonie helps. Venture companies can raise capital here and invest abroad at attractive exchange rates. Domestic projects also benefit due to lower costs for imported equipment.
The loonie's strength may help explain why Venture insiders have been bullish all year. Chilean-focused Polar Star Mining provides a good example. Over the past six months, directors bought 1,005,038 shares in the public market at an average price of 51 cents. In addition, in October 10-per-cent holder HudBay Minerals exercised 1,004,366 warrants to acquire more shares of the copper miner.
Disclaimer: Ted Dixon is CEO of INK Research, which provides insider news and knowledge to investors. Investments profiled are from a recent edition of the Morning INK report which is distributed daily to subscribers and clients of select financial institutions. INK staff may hold shares in profiled securities.