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How many times have I told you? You never, ever sell your crappy juniors, no matter how crappily they’ve been performing and lying on the ground like so much offal shoveled out of the stomach from a slaughtered steer.
Case in point… crappy old Northgate Minerals — NXG for you in the ADHD crowd — was bought out by Aurico Minerals today (AUQ). I have had NXG since the days when I told you all to buy “the three N’s,” or NG, NGD and NXG. Guess which one was the laggard of those three? Sure, it was crappy old NXG. But guess what? Crappy, poor performing juniors get bought out in bull markets. It’s uncanny.
Note in this weekly chart how we’ve been consolidating for 20-something months? Something was going to come out of this saucer… and in a bull market did you really think it was going to be a breakdown? That would be “betting on the silly.” Never a high percentage play:
And here’s the bonus move.. AUQ, the acquiror got beagle-slapped today. With two beagles, even.
I know you are not going to believe me, but I actually own none of this stock at this time. Why, I am not sure, because when I’d read the news today I was chagrined to think that although I was “winning” 28% in my NXG position, I was also losing 18.5% in my corresponding AUQ position. But then, saints preserve us (and they do), I found out that I had zero AUQ in my system. I am going to have to research my notes to find out why I do not. Perhaps I toe-dipped and had a stop or something. Truly, I do not know.
That leads to another serendipity, however…. Not a long while ago I posted the below chart on AUQ with a proposed entry. I give you that chart with no revisions from the last time I drew it up. See anything interesting?
My best to you all.
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Damn! I think when we get to the next C-wave, I will apply your never sell it all rule.
$AAU would like to have a word with you.
You have to look at AAU (and many of the under $5 plays) as “venture capital,” because if you read their financials, that’s largely what they are… exploration companies.
You have to make the determination as to whether you think it will turn out to be a flat-lining GSS, or the next EXK. I lean toward the latter on this, and keep a substantial amount “for the duration.”
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Interesting move in MVG today as well …
Watch for PPP and Joe Conway (Prior CEO @ IAG) to resume their hunt for another North American junior miner asap … hold your chips
Yes, I noted that large move in MVG… still in a range, however… needs to break $12, and then the old highs at $14+.
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AAU please rise up!
Thanks Jake.. Heeded the “never sell all” rule and continue to hope my few paltry shares of GSS will meet a similar fate.
gss and gpl would be wonderful yes
GSS is a dog and I’ve said it many times. Nonetheless, I still hold some, in holding to “The Jake Rule.”
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If that fugger ever gets above $3, i’ll be ‘golden’.
well done Jake.
By the end of this those jr’s will be popping like Reddenbacher’s finest.
Hey Jake, any price targets for IPSU? I have my stop set just below 7. Thanks for the idea. We will see how it goes.
Maybe somewhere around 10.40 to fill the gap? Thanks man. Long time reader.
Yeah… I’ll try to hold til $10… anything more would come under the category “pushing one’s luck.”
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aw bro,you know where it’s gonna go.to da moon. even if it goes back to the 200,which it will, you be lookin at 13-14. if it werent for the robots doing the selling,i could’nt wrap myself in the belief that all those shares sold were weak hands.no way. 70 % and they all jumped ship. no way. i’m not gonna do the qcor again,i will fill the duffle bag,throw it in a closet till it gets back to the 20’s again.
Epic win today, Jobo. And please drummerboy, Jobo only has one bro and thats me!
Love,
The Bird
If you mean me, I have four.
So I guess you are not one of them.
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Jake, ant thoughts on SSRI ?
P/e ratio seems favourable , a bit over five…
Thanks,
I am holding fortuna, by the way
Best wishes
I have SSRI as well, which should be playing “catch up,” although it’s not as high quality as SLW and PAAS.
I would probably sell some of that Fortuna after it gets listed on the NYSE… with the idea to buy back after the initial frenzy dies down.
I don’t any m’self, simply because I don’t mess w. Canuckistanian exchange stocks.
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Are you beginning to rethink the miners all together right here right now? Screw Savage and his Wave theories these suckers are set to explode!!
They look pretty tasty. I’m stepping into some AUQ right here.
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Savage is heavily into GDX.
Jake,
I bought IPSU today, a little late. Am still holding AAU and GDLNF for the long haul. I am still holding IAG and don’t know why on that one.
Jake, decided to joined you on some AUQ.Looks good!
Hey Jake,
How much room do you give your stops on the sugar shack?
Thanks!
First day was $7… after I get some “slack” I move to about a 12% stop. But I will also be selling some tomorrow, to bank some coin.
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Indeed. I went stupid a week ago into SVM and was having my liver shanked out and served on a platter until today. Guess the shorts finally got their nuts squeezed on this one.
IPSU was awesome. Excellent call as usual.
RGLD vexes me like no other. I have watched that one continue to lift, pause, lift, pause….and I never grab hold of it. I even put it in a watch portfolio deciding to get in if it would get within 2% of a price I liked. Ha, it’s now 17% higher. sucker
It should be in your core. It is one of the most unique gold firms out there. A very leveraged financial provider with none of the usual miner costs.
SLW too.
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Thanks Jake.