TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
According to Vancouver capital markets veteran Ron Loewen, evidence is mounting that the Canadian TSX Venture Exchange (“TSX-V”) has hit bottom and investors have a rare opportunity to create wealth by investing in early stage TSX-V companies. Mr. Loewen specializes in funding and advising on the restructuring of early stage, publicly traded, resource exploration companies. In this interview, Mr. Loewen shares his views on the market and small cap natural resource companies poised to benefit from the ever rising demand for Lithium created by advancing technologies and the green energy movement.
Ron, thank you for taking the time to speak with me. Can you tell readers a little bit about your background?
I’ve been involved for most of my adult life in the Canadian Venture Markets (“TSX-V”). I was a stockbroker from 1984-2011 and a contributing writer to various industry publications. I’ve had hands on experience in the practical aspects of TSX-V and formerly VSE publicly listed companies. I have extensive experience in advising TSX-V listed companies on how best they can restructure debt, reorganize management and, if necessary, restructure the capital structure. I ‘retired’ several times, but since I always invest my own capital, I find it necessary to babysit my investments to help ensure success. Further to that, I now run my own private equity firm to assist those seeking advice.
To invest in early stage companies, you are required to bet on the jockey, not on the horse. My background has always been in high-risk, early stage companies and I have used my experience as a contrarian investor and set my focus entirely on early stage natural resource exploration companies. Early stage exploration companies are very, very high risk and, “you need to break a few eggs to make an omelet.” Most importantly, I put my money where my mouth is and invest in companies I can help.
So, you’ve been in the Canadian Venture Capital Industry for many years. What have you learned along the way?
The TSX-V is a difficult animal to understand and predict, which is where my contrarian investment philosophy comes in. When times are bad, it’s hard to make aggressive decisions, yet I push past that insecurity and make the tough decisions when I see an underlying opportunity. Most investors suffer from the fear that, ‘it’s different this time,’ that things won’t get better, but the history of the TSX-V proves that with regard to the market, things have always gotten better. Historically the market has always returned to, ‘buy on any news.,’ from, ‘sell on all news.’
I’ve learned from mistakes I’ve made and I take ownership of them and try not to repeat them. If you don’t learn from mistakes, then you’re more likely to repeat them.