Ivanhoe Mines – New 52 Week High!

by FI Fighter on April 11, 2017

in Copper Update, Precious Metals Updates

Ivanhoe Mines (IVN.TO/IVPAF) hit a new 52 week high today, briefly touching C$5.15/share, before closing the day’s session at C$5.10/share.

As readers may recall, I sold out of my entire position earlier in January this year, booking realized gains of $142,758.64.

With the benefit of hindsight, obviously, that was the WRONG move to make, as I sold out at C$4.00/share, leaving a lot of $$$ on the table.

Oh well, such is life.

I have no regrets…

Since that time, I did have the opportunity to buy back some of those shares, as IVN.TO had a decent correction (which is what I anticipated at the time of sale), and it dipped below my exit point of C$4.00/share for a good while…. I added the bulk of my *NEW* shares around ~C$3.80/share.

I now own 9,350 shares (only a tiny fraction of my original position of 65,000 shares) of Ivanhoe Mines (IVN.TO + IVPAF).

Anyway, this stock has been on FIRE lately, so not surprisingly, it’s been (and will likely remain) a popular topic, and one that comes up a lot through my own private conversations with other friends/family/investors…

As I mentioned in the last post, making BIG GAINS in mining stocks ain’t easy, and it takes a lot of patience/time/perseverance/conviction/etc. to ride a trade out until completion…

 

Buy low and sell high.

The markets can stay irrational longer than you can stay solvent.

The markets are frequently wrong in the short-term, but when they will correct to fair value, nobody knows.

 

You get the idea…

 

For myself, yes, Ivanhoe Mines has been the single greatest investment I’ve ever made across all asset classes, but I’m certain that’s also been the case for many other investors/speculators out there too!

Today’s surge over C$5.00/share didn’t go unnoticed by me, as my phone was being bombarded with text messages regarding the stock…

And it made me think/reflect/reminisce over things…

Straight up — As good as this victory feels on an individual level, what really made my day (and makes me genuinely happy) is knowing that so many other early financial independence fighters out there have been able to transform their lives and turbocharge their progress with this one right move…

Early FI is what it’s ultimately (and fundamentally) all about!

Never lose sight of that!!!

Again, making MASSIVE gains with mining stocks is tough as hell, but it CAN happen, and it has indeed happened to those individuals who were bold/daring/brave enough to go against the grain and load up aggressively when the merchandise was selling off for pennies on the dollar and there were literally no buyers in sight…

Here’s a private conversation I had with a good buddy that I will share below with you, dated all the way back during the Dark Days of Mining, in late 2015.

I’ve got many more messages such as these, but here’s an “inside look” into things… Over time (as this cycle plays out), I’ll be sure to post some more tidbits as I think they will be most useful/instructive/helpful for readers…

It’s difficult to capture all the raw emotions that were behind these texts, but I guess that’s what this blog is for!

Looking back at the text above also makes me chuckle when I think back to my “original plan” with mining stocks…

 

$300,000 -> $1,500,000

5x, or 400% returns.

 

Shit, what on earth was I smoking at the time!?!

 

Back in 2015, it definitely felt like a pipe dream and something totally inconceivable… If you can recall back to that period of time, it certainly was an outlandish idea to bet the farm and back the truck up on mining stocks (particularly junior mining penny stocks, like Ivanhoe Mines), and one that was met with a lot of scorn/ridicule/laughter/etc. from the investing community.

 

Go big or go home…

 

I guess…

 

Do I think that goal is still realistic or obtainable today?

 

Perhaps (and I would have surpassed that $1,500,000 target easily had I bet all $300,000 on black, into Ivanhoe shares alone, hah!), but I’ll confess that speculating/investing in mining stocks has humbled me greatly over the last year or so…

 

It’s a really freekin’ tough game…

 

Honestly, I don’t know if I have what it takes to make the outsized returns (10x; the highly coveted ten-baggers!) that so many better investors are able to achieve in the space… But quite frankly, I also have realized that I don’t need to aim so damn high, anyway…

I’m just a really simple dude, and if I can clear $1,000,000 through mining stocks, that should be plenty good enough for me. For the record, I’m now personally aiming for a total mining portfolio value of $1,200,000.

The current mining portfolio is valued around ~$800,000, so we’ll see what happens next…

As of April 11, 2017.

 

Just need ~50% return from here or so is roughly what I’m after…

 

Not too aggressive and altogether unrealistic, right guys?

 

Anyway, just sharing some of my latest thoughts with you all…

 

And congrats to all the Ivanhoe longs out there! I know some of these folks (like my good buddies) personally and these BIG WINS couldn’t be happening to a better group of individuals…

 

Who knows what’s to come, but it’s already been one AWESOME ride on this gravy train!

 

Fight On!

{ 8 comments… read them below or add one }

1 Jean-ClaudeNo Gravatar April 12, 2017 at 5:49 am

Hey Jay – Do you think Ivanhoe is still a good buy for an investor just entering at current pricing ($5.10)? I believe that there is still a lot of upside left, but I would love to hear your thoughts.

Reply

2 FI FighterNo Gravatar April 12, 2017 at 8:02 am

Jean-Claude,

Ivanhoe still has a ton of upside potential, but like any investment that has run up 500, 600, 700%, I think expectations need to be tempered moving forward. Sure, I bought back in thinking that it’s probably realistic and within the realm of possibility to expect somewhere on the order of 50-100% gains moving forward from here, but I wouldn’t be getting into the stock today if I was expecting another 5-10 bagger… Although possible, the law of large numbers (market cap) will set in at some point, it always does.

So, I guess it depends on your goals, timeframe, and outlook in general. Ivanhoe does operate in perceived riskier jurisdictions in South Africa and Congo, so whether fair or not, that stigma will always surround and cloud the stock (capping the maximum upside potential to some extent)… Just something more to consider, but I love the assets + management that they have in place, so over the long run I think they will be successful.

Cheers!

Reply

3 Jean-ClaudeNo Gravatar April 12, 2017 at 8:12 am

Really appreciate the insight. Thanks Jay – keep up the good work.

Reply

4 SFtraderNo Gravatar April 12, 2017 at 7:36 am

“Honestly, I don’t know if I have what it takes to make the outsized returns (10x; the highly coveted ten-baggers!) that so many better investors are able to achieve in the space…”

Don’t forget, we’re still at the beginning of the cycle. The gains will come!

Reply

5 FI FighterNo Gravatar April 12, 2017 at 8:04 am

SFtrader,

Yup, always good to put perspective on where we are in the cycle… For commodities like gold, silver, copper, etc., we most likely are much much closer to the bottom than any conceivable market top.

Patience is key. As always.

Take care!

Reply

6 KeenanNo Gravatar April 12, 2017 at 7:51 am

Did you do any special preparations when you sold off Ivanhoe to limit taxes?

Reply

7 FI FighterNo Gravatar April 12, 2017 at 8:05 am

Keenan,

Yup, it’s called 401k. 🙂

Cheers!

Reply

8 FI FighterNo Gravatar April 12, 2017 at 8:16 am

In general for “large” sales, I like to hold out for 1 year to qualify for long-term capital gains when I trade using taxable accounts. I did this recently when I sold out of Klondex Mines and B2Gold.

Reply

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