NexGen Energy – World Class Tier 1 Assets FTW! (September 18, 2018)

by FI Fighter on September 18, 2018

in Uranium Updates

Mining is a very cyclical business and mining stocks are even more crazy volatile. Although there are many ways to succeed in the Game of Speculation, my absolute most preferred strategy (learned and continually refined through the years from experience) is to keep things as simple as possible:

 

When in doubt, accumulate World Class Tier 1 assets at rock bottom/firesale prices.

 

Some would argue this approach is beyond boring… There’s no spice, excitement, or intrigue…

 

But damn, does it work!

 

And seldom will it leave you in financial ruin and total despair…

 

In the case of uranium stocks and NexGen Energy (NXE), almost everyone already knows this is without a doubt the best undeveloped uranium project on the planet, featuring the rare combination of: size + super ridiculous high grade + safe and stable jurisdiction (Saskatchewan, Canada) which makes this stock as much a “slam dunk” proposition as any on the market… Of course, the caveat being — You have to be able to “buy right and sit tight.

 

As I recently shared on CEO.CA, a few weeks back.

 

In the past, I’ve made efforts to accumulate shares of NXE at sub $2/share USD levels, and usually when the stock slides to below $1.80/share USD, I get even more interested…

From Seeking Alpha.

Yes, “beta” plays like NexGen can be rather “uneventful” to hold, but when they turn (usually due to macro sentiment improving), the gains can come in a hurry!

Here’s how NXE has performed the last 5 trading sessions…

NXE is up 19.44% since September 12!

Not too bad, right?

 

I realize that in the Game of Speculation, many folks like to go after the high-flying “alpha” stories (i.e. early-stage exploration), which can provide a spectacular thrill ride on the way up…

But… the fall from grace can be absolutely devastating, too (which almost nobody ever wants to acknowledge or talk about, go figure)!

Unless you can follow the markets on a minute-to-minute basis and make quick, timely decisions, it’s just a game that is very difficult to succeed in for the average retail investor…

So, as fun as it is to follow the more “sexy” mining stocks, that’s just not my cup of tea…

 

I prefer dull and boring, like NXE…

 

It’s NOT always about the massive home runs, but more times than not, to succeed long-term in the Game of Speculation, you have to play sound defense and avoid blowing yourself up.

 

Be weary of “pump n dump” artists, who proliferate social media/forums… They speak the loudest and will do everything to hype a stock up… However, when the tide turns, they typically flee into the night, perhaps to never be heard from again.

 

Again, I’m NOT trying to be no hero here and will try and keep things as simple as possible:

 

When in doubt, accumulate World Class Tier 1 assets at rock bottom/firesale prices.

 

Dull and boring is my blueprint for success in the Game of Speculation.

 

I’ll take NXE trading at 52 week lows anyday over 99% of the shit that’s out there in the mining world…

 

Fight On!

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{ 2 comments… read them below or add one }

1 SriniNo Gravatar September 21, 2018 at 4:19 am

Hey Jay,
I don’t see your Mining portfolio any more!!! Have you liquidated all and doing a fresh start?

IF yes then i just cant believe it as i did the same. currently hold only 2 companies.
cheers

Reply

2 FI FighterNo Gravatar September 24, 2018 at 2:31 pm

Srini,

I closed out a lot of positions in January of this year and stopped updating the portfolio page. I still own mining shares, but definitely have scaled back and own only a few positions now.

Still follow the sector closely and looking for good opportunities.

All the best!

Reply

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