$2000 to $500,000 with penny miners.

Discussion in 'Stocks & Derivatives' started by Wy So Lo, Mar 20, 2016.

  1. Wy So Lo

    Wy So Lo New Member

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    I am a long term intermittent lurker, but i have joined the mob to propose an actual trading record whereby penny stocks are bought and held in conjunction with the next precious metals boom. As you are all aware we have suffered a brutal bear market in the precious metals mining space with many miners losing 90% of their value. Around half of the juniors have packed up and left the table. This trend will, as all trends do, reverse, and the response in the junior penny boys should be spectaculous. Yes fabulous and spectacular. https://youtu.be/hu0kcB5gVL8 This video explains the potential and in this example the guy produced an astounding 750x return. During the tech stock boom i was a day trader and learned a few tricks. I never became rich but a friend of mine got in with 5k bought and held almost half way through the boom ,yet still saw his account grow to 95k. before watching it crash back down. Got greedy.
    I assume everyone here has already stacked up physical silver as i have, and this project is designed to be a high, risk high reward concept and i fully expect to see some of the companies that i buy, fold.
    The object is to find companies that still have their head above water yet offer a great entry price. The BLUE SKY POTENTIAL, BSP must be there and the assumption will be that they will rise above their 2011 highs or even their all time highs.
    My thesis is based on a couple of factors that are summed up well in the works of guys like Jessie Livermore et al. Buy the most hated stocks in the worst markets. The PM miners are hated and silver is the most hated, hence its 80 to one ratio with gold. One of the trading indicators i relied on was the 200 sma when it intercepted a rising price. This was the single most important indicator i had ever seen an we are yet to see if that is still a low risk buy signal. Most miners i have looked at have met this criteria already so there is no time to lose.
    If i am not explaining myself well please let me know and i can try to change my format to help things out. I wont be getting bogged down with semantics , spelling and punctuation as I care very little for PC.
     
  2. Caput Lupinum

    Caput Lupinum Active Member Silver Stacker

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    I have a similar investment strategy in seeking out juniors with a decent balance sheet, proven reserves, good management and just require a higher gold/silver price is raise the capex to get funding for their projects. I also have a decent exposure to the ETF GDXJ. Instead of trying to pick the top of the market, I intend to sell some of my positions and buy physical to project my initial gains whilst still allowing for further profit without so much volitility that comes from the junior price movements.
     
  3. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    Sounds like a plan. I'll be a regular in this thread :D
     
  4. Wy So Lo

    Wy So Lo New Member

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    Here is a short list by no means exhaustive.
    alto ventures
    amador gold
    american creek res
    anaconda gold
    ami res
    aura silver
    gme res
    golden cross
    abcourt mines
    argentex mining
    brixton metals
    canasil
    golden goliath
    garibaldi res
    golden tag
    intrepid mines
    scorpio gold
    silver grail
    southern silver
    hampton hill
    millrock
    klondike gold
    klondike silver
    drake res
    eastfield res
    unity mining
    exco res
    dynasty metals
    navada exploration
    gold bullion development
    bravada gold
    barkerville
    erdine resource development

    Now i have not looked at the website of all these companies and there is a chance that some may even be outside of the sector we are looking for so if you happen to find one give me the heads up.
    I have used Big Charts to look at all these companies, firstly on a 6 month or so time frame and secondly, on a 10 year time. This paints a fairly good impression as to 1. liquidity 2. response to 2011 PM price rise 3. recent and historic trading volumes 4. Blue sky potential 5. broader view and first impression. some just feel right.
     
  5. Wy So Lo

    Wy So Lo New Member

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    Caput Lupinum
    One thing that really scares me is my exit plan. Read "i dont have one" and i am more than a little concerned that my calm logic will evolve into fear and greed, if , indeed, we do make some big money.
    Bugged Out.
    Look forward to your company.


    Brokers???.... any thoughts. I was planning on Capital One but the way their register page is set up you need yo be US resident
     
  6. Gilligan

    Gilligan Member

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    Yup. Did the same with arafura in 2007, rode it from 30c to 2.24 and didn't get out soon enough. Greed took over. Ended up selling at 1.70 or so, but coulda shoulda woulda...
     
  7. Wy So Lo

    Wy So Lo New Member

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    You were the smart one. my 95k mate got out with about 20k:eek:
     
  8. SilverDJ

    SilverDJ Well-Known Member

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    I like ones with little or no debt and metal in the ground.
    I bought big on SLR at the bottom. I'm not looking to double my money, I'm looking to get a x10 return.
    Always looking for other possibilities.
     
  9. Wy So Lo

    Wy So Lo New Member

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    Gilligan
    i just looked at Aurafura and all things equal it falls perfectly in to my buy basket so thanks heaps. i will check its basic fundamentals first, but thanks for that . That is the reason i started this thread and as a group we can be both practically complimentary and critically analytical, and thats my four big words for the day.
    Ok just had a look at arafura and it seems to a gold producer or resource holder so i think it is a one for the pool room.
     
  10. Wy So Lo

    Wy So Lo New Member

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    CEO.CA youtube is a site i have recently discovered and should provide this interest group with some ammo.
     
  11. Wy So Lo

    Wy So Lo New Member

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    Looking at the chart alone i totally agree, it should easily produce a ten bagger, in fact i get the feel that an 7- 8 dollar target is quite likely. That puts it in my territory and i might put in a limit order and try to catch it on a dip. Good find.
     
  12. markc

    markc Member

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    I hold SLR, GOR and BDR. Looking at getting some LSR at the next pullback.
     
  13. Wy So Lo

    Wy So Lo New Member

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    GOR and BDR look almost identical and are showing some serious strength. LSR may be of interset if you were able to give a brief summary of the company. SLR we have on our radar. Thanks for your input.
     
  14. Caput Lupinum

    Caput Lupinum Active Member Silver Stacker

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    I'm aiming at starting to reduce my exposure to the juniors once/if we hit the 2011 high again putting the profit into physical metals or even some other sectors if they are undervalued at the time. If we get to the point where we have a parabolic move like we saw in 2011, the only exposure I'll have to gold/silver will be physical so I'm not likely to take a big hit when the market does turn back down again. As I said I use Interactive Brokers for most of my share trading who take residents from all over the world.
     
  15. Wy So Lo

    Wy So Lo New Member

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    Another couple
    Hill end gold
    kingsgate consolidated
    millenium minerals
    The only thing i dont like with millenium is their lack of enthusiasm in 2011
    Caput. How much is that subscription and do you think it would be useful in this context.http://www.goldsilverdata.com/company/238-Hill-End-Gold-Ltd.html
     
  16. bellinvest

    bellinvest New Member

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    TRY and DRM are both in my gold holdings list as decent plays through the coming bull market turnaround.

    I bought TRY prior to their high-grade Guyana operations going online, as their share price bottomed into $0.19 (current at around $0.51). This operation was originally modeled to produce ~120,000oz/year at an AISC of USD$550. Having started mining now, and after removing the over burden 30m sand layer, their most recent reports indicate that they have in-fact hit much more gold (50%+ more) then their original models suggests (there was also a N/S trend they didn't pick up... nice surprise). So in summary... they are re-drilling the resource and will have an updated JORC in Q4 this year i think, which (fingers crossed) indicated significant more tons/grade/oz etc. this could be a 10 year mine (including 2-3 years U/G) with an AISC of US$550.

    I bought DRM about 1 year ago and has done very well! great management in a great location really. They will have their 2nd mine operational in July this year... AISC AUD$1000/oz and produce around 160,000oz which is okay. Huge exploration upside i believe with some interesting hits in nearby JV's!

    So i think TRY and DRM will do well.

    BB
     
  17. Caput Lupinum

    Caput Lupinum Active Member Silver Stacker

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    Millenium is a better company now than what they were in 2011. I'm a fan of MOY

    I believe you'll find the goldsilver data subscription worth it
     
  18. SilverDJ

    SilverDJ Well-Known Member

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    I hold BDR too, but only a smallish parcel.
     
  19. Wy So Lo

    Wy So Lo New Member

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    Thanks for the heads up I was unable to identify TRY if you could name them that will be great. companies like DRM are rare and almost a sure thing over a period of time. I had to smile 50% higher grades are not just a little bit wrong. ha
     
  20. bellinvest

    bellinvest New Member

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    I held BDR and ended up selling for a small loss.

    When i found out the MD was paying himself over $1m/year when the company was making no profit (very small grade operation) i bailed. Just in perspective, he was paying himself more then other gold company's whom had a market cap at the time of 20x BDR's.

    BDR will do well when the tide really turns! but most gold stocks will be riding that tidal flow... i prefer to be with the ones with better management, guys with skin in the game, prospect geology, and lower AISC.

    BB
     

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