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Portfolio+Nothing to Report | 4th April 2017

Portfolio+Nothing to Report | 4th April 2017

Here is my portfolio  which is now 100% in:

 

stock portfolio gold miners

The RMS trade has worked swimmingly thus far.

BLK was a reversal trade. Turns out the bulk of my orders were filled above 44c which now represents a 10% loss. I will give BLK the benefit of the doubt and wait for this bearish sentiment to leave the holder pool.

Once BLK’s underperformance is in the price (not sure if it’s going lower…) but once it’s in the price then it’s onwards and upwards for Blackham. Nobody wants it now, hence the discounted price.

I expect that a few weeks from now it won’t matter if entry was in the 30’s , 40’s or 50’s… ( My previous stop of .485 kicked me out and I re-entered at an average price of .447 (Could have made a lower entry…but oh well. An extra parcel today would have been ideal, but big picture gets me through that disappointment.) (I previously sold BLK 57c+ in January, so no biggie.)

 

Nothing to report:

Literally, I have had nothing to report on or rave about. Gurus left, right and centre seem to be throwing darts as to what the future holds. Some will be right by luck and some won’t.

I’ve capitalised on low entry opportunities for my preferred gold miners, not knowing for certain what the future holds. Therefore my short term trading is now at an end until the next spike in gold miners prices.

That could be days or months away.

Who knows.

What I do know is that the entry prices I have seized have reduced my risk to the downside and given me plenty of upside opportunity.

As I mentioned previously, trade your stock’s support and resistance. This is far better than trading the gold price which is taking on a life of its own.

(Is it safe haven buying? Is it the Yen? Is it bonds? Is it the coming stock market correction?)

Speaking of which, if the stock market corrects, gold will spike. Once the correction is over it would be a good time to take profit on the gold sector as the panic subsides.)

 

If you want to know something, let me know.

 

Otherwise, I really have nothing to report at this stage.

 

Think Better. Trade Better.

“Get into rhythm” – a shout out to D.Liew

Faithfully

|the Merchant

13 Comments

  1. Craig Purdie

    Nice entry for your portfolio, congratulations on your boldness. Don’t feel bad with BLK at least you missed last week unlike me! Based on earnings if June quarter goes well I am happy to buy more to average down if I see evidence of a rebound. What do you make of their recent trading halt and risk in the June quarter? Also the timeliness of their reporting …

    RSG is also in my portfolio, interesting growth prospects but some risk 2/3 being in Africa but established gold countries. I held them through the ebola outbreak and they were good reporting to market through this. AISC is very low, and I make their annualised free cashflow from the last quarter at 23% of their Enterprise Value. Organic growth plan and loaded with cash to fund it.

    Reply
  2. Phillip Diamond

    Leo,
    RSG & DRM are low P/E operations in gold. DRM has high grade but not large deposits, yet has kept finding
    such. RMS is a longer term, attractive play. Have you lokked at TGZ (t/o of GRY). Record gold production last year and a lot on the boild in Turkey and Africa, with DFS and proving up good looking deposits. Main list on TSX.

    Phil

    Reply
    • the Merchant

      Interesting notes Phil. For the record, while overseas companies can be and will be very effective, I personally do not participate in individual mines based overseas such as Africa , Canada etc. I do trade USA GDX etc though.

      Reply
    • Leo

      Phil, I am not familar with TGZ, I will look into them tomorrow.

      Leo

      Reply
  3. PAUL

    Hi Jack, Not sure if your interested in discussing individual stocks specifically so no offence if you do not want to comment on the following but MOY doesn’t seem to be doing as well as the other Gold stocks at the moment, lots of BOT activity on some days as well, what does this BOT actually mean ??. We also have a new CEO in Peter Cash after the much loved Glenn Dovaston resigned on the spoT a couple of weeks ago. Do you have a view about any of what I’ve said here. Cheers Paul

    Reply
    • the Merchant

      I’ve entered at 25.9c. It’s producing gold and I think the changes are in the price. If gold goes up, so will MOY. Not too much more to it than that for me. I’ve traded MOY twice already so just repeating what I’ve done before. But previously I had 400k MOY. Now I have 160k. Just spreading risk a bit. Overall I like it and think it has room for growth unless there is some news I’m not aware of. Once their mine life extends from drilling results then more buyers will enter with more confidence.

      Reply
      • PAUL

        Good work Merchant thanks for your reply, I just looked at the monthly Chart and looks like a pretty sic Cup and Handle Pattern in play now and with the daily / Weekly and Monthly Stoch’s looking over sold or close to it… its looking very encouraging. We look forward to your next installment. Cheers Paul

        Reply
          • Leo

            Into RSG at 1.31 & 1.295. Into RMS 51, sold at 56. Not overly keen on RME due to low reserves.

            Even though RMS has always been a low reserves operator, they are certainly a rarity in not wasting valuable up front cash on proving up a 12 year+ mine life before actually mining. They mine and add to the resource from cash generated from current operations.

            RSG is my core holding based on current valuation metrics and their planned growth profile.

          • the Merchant

            👍🏻👍🏻👍🏻

          • the Merchant

            Hi Leo,

            The RMS trade is a longer term trade for me. So not interested at exiting at this stage… RSG: I have not really considered it and am not really familiar with the company. I’ll have a look at maybe post about it some time. What gives you confidence to make it your core holding?

          • Anonymous

            Merchant, RSG low PE, 300koz pa ramping up 450koz in the coming years.

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