Portfolio Update: Reshuffling the Deck (October 27, 2017)

by FI Fighter on October 27, 2017

in Nickel, Nickel Updates, Precious Metals, Precious Metals Updates, Uranium, Uranium Updates

Here’s an update on my latest trades for the week ending on October 27, 2017.

  • Bought 3,000 shares of NexGen Energy (NXE) @ $2.10/share 
  • Bought 9,000 shares of Erdene Resources (ERDCF) @ $0.5126/share 
  • Sold 5,000 shares of Garibaldi Resources (GGI.V) @ C$4.85/share 

NexGen Energy

Uranium is hated right now, which is good for anyone who wants to hunt for deep value discounts… The problem, though, is that what is cheap today can stay cheap and continue getting a whole lot cheaper for even longer than anyone expects…

In the case of NexGen Energy (NXE), I jumped the gun prematurely, and added shares prior to the massive drop experienced today…

Such is life.

Buy low and sell high.

It’s extremely tough (impossible) to time the exact bottom, and in the case of NexGen Energy (and uranium) it looks like we are indeed talking about “catching falling knives.”

In the long-run, I feel confident that NexGen Energy is no doubt a winner and that the shares will eventually recover strongly from here… Since this is a “beta” play that depends heavily on the spot price of the underlying commodity (uranium), when the upturn will occur is anyone’s guess… It could be 2, 3, 5 years from now…

Nobody knows.

For beta plays (especially deep value ones), it’s a Game of Patience.

As such, I’m keeping shares of NXE in my retirement account…

And I’ll try not to look at the price action everyday, since I’m accepting upfront that things will probably take awhile to play out…

With that said, I’m probably not done buying, either.

NexGen is simply too good to ignore the cheaper it gets! I think I got another tranche left in me should things keep spiraling even further down the abyss…

Erdene Resources

Erdene Resources (ERD.TO/ERDCF) is not quite as hated as uranium, but it’s seen better days, for sure…

What was once an exciting “alpha” exploration play has transformed into a boring azz development play, and the market just hates that stuff right now…

So down goes Erdene Resources!

I’ve been averaging down on the dips, but realize very well that the trend ain’t my friend right now, and the worst might still be to come…

I might load up on another tranche if we break into the mid C$0.50/share range…

Garibaldi Resources

Finally, a story that is actually working (and saving my portfolio from destruction)!

Garibaldi Resources (GGI.V/GGIFF) has got to be the mining stock of the year, up over 3,200% year-to-date…

Buy low and sell high.

I first purchased shares of Garibaldi Resources at ~C$0.72/share… and have been selling off shares in tranches as I look to exit out of my position into massive strength.

The last tranche of shares I sold were up ~7x from my initial cost basis!

Seriously, what more do I want?!? This spec has already far, far exceeded my initial expectations (all I really wanted was 2x at most)…

From a risk/reward perspective, I just thought it made sense to sell some more shares now…

With Garibaldi Resources, we are talking about:

  • C$420 million market cap.
  • Still waiting for assay results…
  • Sky-high market expectations and a ton of interest!
  • Etc.

This run-up has been ABSOLUTELY INSANE, and I’m simply gonna count my blessings and try to live to fight another day…

If Garibaldi ends up making the discovery of a lifetime, sure I’ll miss out plenty, but straight up, if I’m gonna dwell on the fact that I “only” made 3-7x my capital, I’ve got issues…

Greed knows no bounds, never forget that!

Oh yes, and…

There’s ALWAYS another train arriving at the station.

I’m ecstatic beyond belief with this win… I will have zero regrets, regardless of how much higher GGI.V/GGIFF runs from here…

Best of luck to those who ares still holding large and chunky GGI.V/GGIFF positions! This stock has been life-changing for so many good people (who deserve it!) and I couldn’t be happier for you! Kudos, and job well done!

Special shout out to @1969engima on CEO.CA for putting this story on the map for me! Much appreciated!

Summary

Not too many moves this week! I added shares of NexGen Energy and Erdene Resources, which I think are encroaching upon deep value territory. Lastly, I thanked my lucky stars and sold another tranche of Garibaldi Resources; I still own 25% of my original position, so I’ve still got some stake in this Golden Triangle play!

Here’s where things stand now…

The portfolio is hanging in there thanks to Garibaldi Resources and AVZ Minerals…

 

The beta plays are getting thrashed right now (Almaden Minerals, Balmoral Resources, Erdene Resources, GoldQuest Mining, Sandspring Resources, Sarama Resources, etc.)!

 

So the game goes… Bring on tax-loss selling; I’m ready!

 

Fight On!

{ 6 comments… read them below or add one }

1 AnkitNo Gravatar October 27, 2017 at 8:44 pm

Actually i sold my NexGen Energy and eCobalt Solutions both first thing in the morning and added to gold and silver miners like AXU, USAS, ERDCF and AXDDF. looks like we have solid support at $1260 for gold and could rebound soon so hopefully it’s time for gold and silver mining stocks for short bounce from here but will see how next week will bring with lot of news.

I really like NextGen and eCobalt and will be adding to portfolio soon but need more fund for gold and silver miners so i had to Reshuffle my deck 😉

Reply

2 FI FighterNo Gravatar November 5, 2017 at 9:24 am

Ankit,

Haha, nice trade! Yeah, gold/silver miners are so beat up right now it could make sense to swap…

I’m still looking to add over the next two months and ERDCF is high on my list right now due to the sharp drop.

NexGen is a great deal too, and I’ve been averaging in with the dips.

All the best!

Reply

3 PonNo Gravatar October 30, 2017 at 11:30 am

Welcome back to uranium!

Reply

4 FI FighterNo Gravatar November 5, 2017 at 9:25 am

Pon,

I always knew I would be back. 🙂

Cheers!

Reply

5 CNo Gravatar November 3, 2017 at 11:35 am

Hi Jay, what Do you think about McEwen (MUX)? Also got hammered and he prooved he can do it.
Best
C

Reply

6 FI FighterNo Gravatar November 5, 2017 at 9:26 am

C,

It’s a solid mid-tier producer with great management but right now my preference is to focus more on explorers/developers… The only producer I own currently is Resolute Mining.

I see the most value in the depressed developers personally.

Take care!

Reply

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