Start at the Bottom
Well, I hope it's the bottom
I curate and write for Motherlodetv.net. We specialize in TSX-V stocks.
For Motherlodetv I try to be pretty objective, positive and non-promotional about junior exploration and development companies.
In this substack I want to step out from that objective perspective. There are companies I love, am invested in or want to be invested in, and think make a lot of sense.
At the moment, the junior market is in the dumps. It happens. I don’t even like looking at my investment accounts. I’ve lost a bunch of money. Or I would if I sold at the moment.
Which is part of the business. The fun stuff occurs in the weird world of the TSX-V where stocks can drop 50% because it’s Tuesday. They can also rise 500% because it’s Thursday.
So, for this, my first Substack post a few things I believe:
I am not smart enough or wired enough to “trade” stocks. I buy stories. Then I hold.
A good story is about a) management, b) prospective property, c) exectution.
Most TSX-V plays do not pay off. If you run 10:1 losers to winners you are doing well.
In a bad market - like the one we are in - great news is a liquidity event and the stock is not going to move much. Bad news is a capitulation event and the stock will go down.
Real value will reveal itself. The $ELO.V blob of #tin will find its actual value over time. (Wish I had got that at the $0.20 I first heard about it.)
The Venture, while it looks a lot like a casino, can be realistically valued…or, rather, Venture companies can.
“Bingos” happen. So do five year plays going from $0.20 to $5.00.
Take your money off the table: I have several companies where, frankly, my current investment is zero because, when they doubled or tripled, I sold a part of my position.
No one knows anything. So says Bob Moriarty at 321Gold.com. He’s not wrong. So, do your own due diligence. An hour poking around the net and a call to the CEO will give you a bit to work with.
Cleverly balanced portfolios are a very good idea. The TSX-V and other markets for juniors are not for your necessary, cautious, money. They are for that 10% of your holdings which you like to play with. Making 110K on a $2000 investment does not happen often, but when it does it is grand fun.
I’ll try to write regularly. Right now there are a lot of oversold juniors. If I write fast enough, chances are I will be right on a lot of companies simply because they are trading at really silly numbers.
[Disclaimer: This is not investment advice. I am not an investment professional. I am down about 30% at the moment. I will write about companies that I hold. I will disclose any holdings. Do your own due diligence. Do it hard. Call the CEO.
I currently own shares in $ELO.V which I intend to hold but which I may sell at any time.]