Today's valuations rival the 2008 bust in mining stocks. And mining stocks soared hundreds of percent soon after that bust.

Canadian Phoenix Resources (TSX: V.CXP, Stock Forum) has $79 million of cash the bank... Yet its stock market value (as I write) is $67 million.

Canadian Phoenix sells for a $12 million discount... The shares would have to rise 18% just to trade at the value of the cash it holds in the bank.

This is just one example, and I'll explain more about Canadian Phoenix in a minute. My big point today is:

Natural resource companies have become incredibly cheap... with many selling for less than their cash in the bank.

Today's valuations rival the 2008 bust in mining stocks. And mining stocks soared hundreds of percent soon after that bust.

In the just-released May issue of John Doody's Gold Stock Analyst newsletter, John points out that the valuation disparity between gold stocks and the price of gold is at an extreme. It is "exceeded only by the -34% undervaluation they had in October 2008, when it seemed the world was going to end."

John's indicator is my favorite value indicator for gold stocks. It has a great track record. With valuations this low on his indicator, John minces no words in his latest issue: "We do not believe the valuations could go lower."

It's practically mathematically impossible for some of these resource companies to get cheaper.

Let's go back to Canadian Phoenix, as an example... Remember, Canadian Phoenix is selling for a $12 million discount to cash. There's got to be a catch... Canadian Phoenix has to have a pile of debt or something, right?

Canadian Phoenix has essentially zero debt. The book value of the company is equal to its cash in the bank – $79 million.

The company must be a money-losing business then, right?

No. There's actually no "business" at this point. The company sold its main assets in 2010 and 2011. As the company explains in its latest update.

Canadian Phoenix is a junior oil and gas exploration, development and production company seeking to invest its cash holdings of over $79 million...

So when is $79 million in cash valued at $67 million?

The answer is: Today, in the junior resource sector, in Canada...

You see, the junior resource sector has fast become one of the world's most hated sectors. In the last year, commodity prices are down 20%. That hurts the potential profitability of junior resource companies. So investors have panicked... pushing prices lower.

Canada's TSX Venture Index is a gauge of the price action in small gold, silver, uranium, and energy stocks. Note the emphasis on "small"... These are not huge, stable companies like ExxonMobil... but riskier plays on mining and energy. The Venture is down 43% from its 2011 highs. I'm not talking about its highs before the Great Crash... I'm just talking about last year's highs.

As I write, over 80 companies in the TSX Venture Index are selling for less than cash – just like Canadian Phoenix. (Specifically, 80 companies have more current assets than total liabilities.)

I know nothing about any of these companies. But other names that appeared on our screening include Gobimin with $11 million of net cash above its $42 million market cap and Kobex with $10 million in net cash above its $29 million market cap.

My point is NOT for you to buy Canadian Phoenix or any of these companies... I know nothing about them. I have done no homework on them.

My point is that natural resource companies have become incredibly cheap.

Dozens are selling for less than cash in the bank. The last time resource stocks hit valuations this cheap, they soared hundreds of percent.

I am not buying yet. I haven't seen any semblance of an uptrend yet. But we have to be close.

Hundreds of percent gains are around the corner in natural resource companies – I'm certain of it.

I just don't know how long it will take 'til we'll get to that corner...