Frank and Kastel,
You betcha. I also had TAN RANGE for 12%. I like to buy'em when nobody's noticed them yet, like SWG, which I believe that it will have its day just like the others.
I don't know how the short term scenario will work out, but I expect rallies, pauses, and pullbacks to continue for some number of months. I plan to continue to sell those explorer stocks that are approaching strong resistance or looking technically weak after a good run and rebuy those explorer stocks that haven't moved yet or have retraced and consolidated or otherwise given a technical indication that they are at least finished going down if not ready to go up. I try to do this incrementally so that my total PM position never gets too small, but expands and contracts as I take profits and rebuy. I mention this because following my plan seems to take care of the question of how long this will last without having to anticipate the answer.
I believe that today was like a cannon going off in the junior/explorer sector saying "This is for real!".
Kastel brought up the question of whether prices will go back to where they were in 1997. I think that is a reasonable perspective, so a couple of weeks ago I set up a spreadsheet to dynamically compute what my gains would be if prices went back to their January, 1997 levels, when the POG was $400. Even though that doesn't account for the fact that many of my explorers have much better properties now than they did then, my portfolio's NAV at those prices would be 334% of what it is now (without any future trading). Even half of those gains would be terrific. I'm not holding my breath until that happens, nor do I know how far this will go, but I am confident that this is just the beginning.
Regards,
vt |
