Author Sees Local Stocks Shining
A new book gives an optimistic reading on the investment potential of three Spokane-area companies that have not enjoyed the best of times lately.
“The 105 Best Investments of the 21st Century,” by Richard Maturi, includes Hecla Mining Co., Pegasus Gold Corp. and Washington Water Power Co. in an eclectic mix that starts with stocks in industrial companies and concludes with collectible books.
Maturi, who said he has been following stocks since he was seven years old, said the selections are based on historic growth put in the context of market, industry and global trends.
The overall approach is conservative contrarian, a plan he said he adapted from noted investor John Templeton, founder of Templeton Mutual Funds.
Maturi interviewed Templeton for one of his five other books on investing, “Divining the Dow.” He has also written hundreds of articles for publications like Barron’s, Investor’s Business Daily, and the New York Times. Templeton, among others, praised the earlier volumes.
Maturi said those books were theory-oriented. “105 Best” is intended to give investors specific stocks they can plug into their portofolios.
In recommending precious metals stocks, he said they will continue to be a hedge against political turmoil for utility, mining companies through the rest of the decade.
Scientists are finding more industrial uses for gold, he said, and Russia’s liquidation of its reserves has slowed, removing a significant drag on worldwide precious metals prices.
Maturi’s list includes eight mining stocks, all financially strong and all based in North America because the political environment is stable.
Hecla and Pegasus were picked despite a history of recent losses.
Coeur d’Alene-based Hecla has the reserves and a 102-year operating history to sustain it through the recent downturn in silver prices, Maturi says in the book.
Pegasus is rapidly expanding production at properties around the world while its stock has suffered from over-concern about environmental problems, he writes, adding that both companies are wellmanaged.
Also on the list is Edmonton, Alberta,-based Echo Bay Mines Ltd., which operates mines in Ferry County.
Maturi, who publishes a utility industry newsletter, likes the stocks because they have taken a beating in the last year while the nation’s demand for energy continues to rise.
The 105 stocks he picks run the gamut from telephone and water companies to several energy utilities in the forefront of such developments as geothermal and coal gasification.
Maturi says he likes WWP for its yield and the increasing contribution made by its non-utility operations. He also praises the proposed merger with Sierra Pacific Resources.
“105 Best” is a Money Book Club main selection for the month of March. The publisher is McGraw-Hill Inc.