Rick Rule on resources, especially Canadian Junior Oil and Mining

I’ve been listening to the most recent Chris Martenson podcasts.  In the following podcast, Martenson interviews Rick Rule (December 9, 2011).  Rule recommends investing in undervalued junior oils.  He gives the following scenario:  A junior oil has 1 billion in Net Present Value, a market capital of $300 million.  A larger producer will take out the company for $700 million because of the derisked oil and the larger producer knows that it can make money off the holdings of the junior oil holdings.  This is well worth listening to for all those who are investing in resource companies, as Rule explains how to determine value in the sector.