Portfolio Update: Building My Positions (January 08, 2016)

b2gold-corp-logo

The world of gold mining stocks is a really crazy, volatile one… This morning is another perfect example of that as a selloff is currently taking place; one of my favorite mid-tier producers, B2Gold (BTG), is down over 10%, and at one point shares hit $0.90/share!

It’s times like these that are most troubling (interesting)… A stock is getting hammered, yet there aren’t any news releases to support it…

  • Large funds dumping shares?
  • Mine problems? Worker strike?
  • Management change or shake up?
  • Missed revenue, earnings, guidance?
  • Unreported financial problems?
  • Some kind of other major snafu?
  • Equity financing?
  • Acquisition, merger, etc. on the horizon?

As a retail investor, there’s no way for us to know for certain… So, we are left with the following propositions:

  • Back up the truck!!!
  • Sit back and do nothing…
  • Sell, Sell, Sell!!!
  • Proceed with optimism but retain some degree of “caution”

I really have no clue what’s going on behind the scenes, but I do know that I was a fan of the stock at $1.00/share… So, below that, I’m obviously paying attention…

I guess a somewhat cautious approach (my action this morning) could be to buy a “small” tranche today… Let things play out over the next few trading sessions and then form a more definitive opinion. As such, I added 7,000 shares @ $0.954/share. I now own 22,000 shares. My cost basis is $1.056/share.

Just is my luck, I got in way too early… Shares are currently trading around $0.925/share as I type this…

Screen Shot 2016-01-08 at 9.43.19 AM

Fortune favors the bold!

But “idiots” also get decimated when they rush into perceived “super sales” that turn out to be nothing more than falling knives!

Let’s hope that’s not the case with B2Gold!

If it turns out that there is no legitimate reason for this selloff, I’m going to have to start liquidating some other positions to “back up the truck”…

 

But for today, let’s play it a little safer, and just stick to the “buy in tranches” strategy!

 

Happy Speculating!

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Booking Profits – B2Gold ($53,015.11 Realized Gains)Mining Stocks – Rules of the GameLithium – A Most Hated Sector (August 16, 2016)ambertreeUncleBob Recent comment authors
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No Nonsense Landlord
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The market is confusing. unless you are a trader, and ready to react quickly, an index is better to hold.

I admire your bold take on the gold stocks.

UncleBob
Guest
UncleBob

I bought 5000 at 0.92 and couldn’t find any reason for it falling. From the speed the price recovered and the fact that most miners were down today I’m thinking the drop was just random panic selling rather than news driven at this point.

On the bright side though, I can confirm you won’t be the only one punched in the balls by it, if there was a reason for the drop.

ambertree
Guest

It is an interesting story that you tell with your gold play. I am curious to see how it works out.

I am more cautious by picking up gdx and working with on top of that.

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