Portfolio Update: It’s Beet Red These Days! (November 10, 2016)

by FI Fighter on November 10, 2016

in Cobalt Updates, Graphite Updates, Lithium Updates, Precious Metals Updates

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Wowza! What a total bloodbath in mining stocks! Haha, the day after I put out my latest watchlist, I find many of my best ideas down over -10% in a SINGLE trading session! Call it deja vu, but this most recent selloff in precious metals stocks feels like January 19 all over again…

I’m sure many investors/speculators are feeling pretty unwell right now… No doubt, my portfolio has seen much better days, but to be quite frank and honest with you readers, I much, much prefer to provide you updates when there is absolute despair in the air, as opposed to a surplus of greed.

Buy low and sell high!

That message needs to ring loud and clear! Most people only like to buy when the tide is rising and everything gets bid up out of the stratosphere… But we all know that if you really want to make money, you win on the buy side of the trade.

So, as we speak, I’m doing my best to mobilize some more funds, wheeling and dealing my way to play this latest downturn.

I have no fear… Call me the biggest idiot ever, but I only seem to get more giddy when I see some of my favorite stocks getting smashed into oblivion.

Let me now do my best to summarize my moves since the last update:

  • Bought 500 shares of First Majestic Silver (AG) @ $7.77/share
  • Sold 1,000 shares of First Majestic Silver (AG) @ $9.40/share
  • Sold 2,024 shares of Endeavour Mining (EDV.TO) @ ~C$25.50/share
  • Bought 1,660 shares of eCobalt Solutions (ECSIF) @ $0.40/share
  • Bought 21,000 shares of Sandspring Resources (SSPXF) @ $0.405/share
  • Sold 5,000 shares of Ivanhoe Mines (IVPAF) @ $1.70/share
  • Sold 6,000 shares of Ivanhoe Mines (IVPAF) @ $1.72/share
  • Bought 102,000 shares of Aton Resources (ANLBF) @ $0.053/share
  • Bought 85,857 shares of Aton Resources (ANLBF) @ $0.057/share
  • Bought 58,500 shares of Orca Gold (ORG.V) @ C$0.478/share (total cost basis)
  • Bought 47,500 shares of GoldQuest Mining (GQC.V) @ C$0.430/share (total cost basis)
  • Bought 10,000 shares of eCobalt Solutions (ECS.TO) @ C$0.60/share
  • Sold 20,000 shares of Critical Elements (CRECF) @ $0.416/share
  • Bought 8,900 shares of Orca Gold (CANWF) @ $0.335/share (total cost basis)
  • Bought 20,200 shares of eCobalt Solutions (ECSIF) @ $0.41/share
  • Sold 3,500 shares of B2Gold (BTG) @ $2.67/share
  • Bought 58,700 shares of Sarama Resources (SRMMF) @ $0.159/share (total cost basis)

 

Oh brother, what a long list of transactions… With the above, I did my best to report the share price I initiated my orders at, but in the instances where there were multiple fills (and things got too confusing and complicated), I simply decided to just report the total cost basis (which includes all fees and commissions)…

For anyone who thinks I’m buying and selling far too excessively, please understand that I am no longer working a 9-5 job, so I’m not exactly raking in the dough these days… My cash flow goes to cover my monthly expenses, but whenever I have some spare change, I like to throw it into the fire… By and large, though, I’m funding these purchases by trimming other positions.

Also, whenever possible, I try and make every effort to buy/sell using tax-sheltered retirement accounts… Really, who wants to pay more capital gains taxes than necessary?!?

I think President Trump would agree with me on that point…

Do I have the perfect formula dialed in for when to buy or sell?

Hell no!

I have no freekin’ clue as to what I’m doing at any given moment in time.. I’ll be the first to admit to that truth!

For example, I bought more shares of First Majestic Silver (AG) when it hit $7.77/share, thinking we were close to bottoming out… When it spiked back over $9.00/share, I thought, “Hey, maybe now’s not a bad time to take some gains off the table…” With that mindset in place, I sold a small parcel at $9.40/share, and got to reduce my cost basis substantially in the process (by over $1.00/share), down to $7.29/share

Sometimes you get lucky…

On the other hand, I started booking some profits on Ivanhoe Mines (IVPAF), and now with the spot price of copper surging much higher in recent months (who would have thought!), well, it now looks like I sold prematurely…

Hey, you win some and you lose some…

In my case, I probably (and typically) make many more bad decisions than good ones, but I’m just doing the best that I can…

And I’ll admit, selling some of these stocks is not easy… For instance, I recently closed out my position in Endeavour Mining (EDV.TO), my biggest winner ever (across all asset classes, yes, even with real estate I never made this much money). I booked profits of 442% on this beauty! Don’t get me wrong, I still think Endeavour Mining is a great company and it’s probably one of the best gold stocks on the planet… But when it comes to investing/speculating, you simply cannot fall in love with your stocks! In the case here, I had to go with my gut instincts which were telling me that shares were no longer cheap, and if anything, priced at/near perfection…

I did what I thought I had to do…

Similarly, I trimmed some shares of Critical Elements (CRECF), which is probably my favorite lithium holding of them all… No, I didn’t sell because I no longer believe in the fundamental story anymore, but this was one of my larger holdings and like I mentioned earlier, I have no qualms with pruning some shares to help reduce the cost basis… That, and I wanted to diversify some of my lithium funds into cobalt… In essence, my capital is still playing the clean energy revolution, but I’m more spread out and diversified now, with the addition of eCobalt Solutions (ECS.TO/ECSIF) into the mix.

Anyway, with the latest selloff in precious metals stocks, I’m now more enthusiastic and bullish than I’ve ever been since January 19!

I love me a good firesale, what can I say?

Right now, I’m doing everything that I can to free up some more funds, as I go deep value hunting!

For certain, you can expect a few more moves to be made in my portfolio.

I mean, seriously, as a buyer, how can you not love this?

My list of holdings current to November 10 market close (sorted in order of biggest smackdown).

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Holy smokes! It’s bloody beet red again!

I told you all I wouldn’t disclose my cost basis anymore, as the last time around I thought that I was doing more harm than good… I was getting far too many inquiries from eager buyers who were hellbent on chasing the markets up and overbidding for these mining stocks (in retrospect, that should have been an indicator for me to start trimming some positions!)… I wanted NOTHING to do with that, and really didn’t want to encourage reckless buying/speculating.

Suffice it to say, I’m now almost certain most of those same retail investors have lost all interest in the mining sector and have probably decided to invest in the next hot stock…

So, I feel like anyone who is actually reading this (wow, you made it this far!) is aligned with my line of thinking and just loves a good market selloff event to gobble up cheap inventory.

With all that said, here you go.

Here is my portfolio current as of November 10 market close.

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There you have it… As usual, no bullshit from me… I just try and tell it like it is, and I’ve often been told in the past that readers really appreciate the TRUTH, so here’s me putting my money where my mouth is. I pledge to readers of this blog to NEVER become one of those “pump and dump” scam artists, pimping out crap stocks/investment ideas that I don’t actually believe in with full conviction just so I can earn some “under the table” coin.

 

No hidden agendas or ulterior motives here!

 

There is enough garbage floating out there on the web… I don’t need to contribute more filth… I’m not suggesting that I’ll always make the right choices along the way of this journey (I’ve been wrong so many times that I’ve lost count), but you can be certain that whatever I share on here is for realz…

 

Please note: The spreadsheet above will show some duplicity in holdings (e.g. Critical Elements (CRE.V/CRECF). This is because I hold the same company in different accounts (e.g. retirement account that forces me to purchase OTC-listed shares and in a global trading account where I can buy shares directly on the TSX, TSX-V, and ASX).

Also, nothing that I say or do should be misinterpreted as a recommendation! Please do your own due diligence and research before putting your investment dollars at risk! Mining stocks are insanely volatile and you need to possess an iron stomach if you’re going to play!

 

Some thoughts — For starters, I’m getting totally smoked in Australia right now… Check out my ASX-listed stocks and their performance! Talk about pathetic and dismal… I’ve got that in spades!

No sugarcoating, it is what it is… But in the event that I somehow made a mistake and left out some details, or miscalculations, please forgive me! When I discover any errors, I do my best to get the spreadsheet corrected and up to date again.

I realize that the above spreadsheet might be difficult to read… And it’s not a good representation of real price discovery either, since I now own far too many illiquid OTC listings… But the above shows my EXACT holdings under their respective ticker symbols in which I own them.

For a much better, far more accurate gauge of where things really stand, please see my consolidated portfolio shown below.

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Once you remove the dual-listings and replace the OTC holdings with their more liquid/native listings, a true grasp of what’s really going on starts to emerge… For anyone who is curious, the OTC shares are 100% interchangeable, and you ALWAYS have the option of buying/selling them back onto their native exchanges! So, don’t sweat the technique!

28 holdings… Yeah, that’s far too many for my own liking… In my defense, I’m spread out across many sectors: gold, silver, base metals, lithium, graphite, cobalt, uranium, etc…

Over time, I’ll look to trim the total number of holdings back down… I’m thinking somewhere along the 23-24 range sounds about right for what I’m trying to accomplish with my portfolio. Also, right now I’m holding a few more early-stage spec plays, and as everyone knows, that’s pretty much akin to gambling. As a defensive mechanism, I tend to like to compensate any high-risk specs (e.g. Northern Shield Resources (NRN.V) and Alicanto Minerals (AQI.AX)) with some more advanced-stage development stories (e.g. GoldQuest Mining (GQC.V) and Sandspring Resources (SSPXF)).

Quite frankly, right now, there are just way too many killer deals for me to ignore… So, I look at the bid/ask spreads and sizes… If I can’t nail down what I’m looking for, sometimes I’ll go hunting elsewhere… Just earlier this morning, I initiated a position in Sarama Resources (SRMMF), but I could have just as easily bought more shares of Orca Gold (ORG.V/CANWF), which also sold off…

Anyway, things sure are getting mightily interesting in the mining space… Just when I thought I was done buying (more or less), the market has found a way to pull me back in.

I’m not turning away from these firesale prices… Many of these prospective stories have only gotten better with time, yet their share prices have been slashed by -40% or more! And with every -50% decline in share price, you’ve got to experience a 100% increase just to get back to where you started from!

I am 1,000% convinced that the bull run in precious metals and mining stocks is NOT over! Nope, I don’t know where the bottom is, but at some point, these stocks will rip much higher again… When that happens, I want to be as well positioned as possible.

Most importantly, I’ve learned that when you’re in profits, it’s NEVER a bad idea to sell some stock to help greatly reduce the cost basis (and to help magnify your protection to the downside).

Next time around, when the speculative retail investors come pouring back into the space in full force, I need to reference this post again so that I’m reminded to NEVER chase after price action alone! When people are ferociously buying, you’ve got to be thinking about selling…

Damn, sounds so simple, doesn’t it?

Hopefully one of these days I’ll get much better at the Game of Investing and the Game of Speculating.

 

Present day, I’m elated to be a buyer once again!

 

Happy Hunting!

{ 2 comments… read them below or add one }

1 JCNo Gravatar November 10, 2016 at 10:22 pm

Hey FIFighter,

Really appreciate the post. Keep up the good work man, been following for a few months now and looking forward to beginning my macro investing journey as well.

Reply

2 bethNo Gravatar November 11, 2016 at 3:52 am

I have been holding American Lithium Corp for a few months and now I am left wondering if I am going to make a good profit or lose it all. They halted trading over a week ago and there has been no news from the company about why they did this.

About a week ago the company release great test results from their Nevada lithium properties then the sudden halt. Bankruptcy or a profitable take over? I have never seen a company halt trading for over a week.

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