Hi Kit. Let's talk about SWC a little.
Because the stock has been very volatile recently, it's received a lot of attention. However from my perspective it's important to emphasize that SWC is one of a diversified list of stocks from several sectors that I own and like very much. My approach for many years has been to trade around core positions in these stocks (which I usually hold for intermediate and/or long term gains).
So, yes I like it. BUT it's not a huge or even my largest position even after aggressively adding yesterday. Small caps, in particular, carry inherently more company specific risk for a variety of reasons we don't have time to go into. So, spreading your risk by investing or trading in a list of names is a prudent approach. For that reason, my portfolio usually contains at least a dozen different individual stocks.
SWC is of a number of small and mid caps that I like and have mentioned here in recent months from the PMs, oil service and natural gas sectors.
(Everyone has to do their own DD and research. And nothing that any web post says should ever substitute for that.) But among many other noteworthy facts, SWC is the only PGM mine outside of Russia and SA. It has a good balance sheet and favorable fundamentals. The management and earth science team has done a good job of exploring and developing their large block of mineral acreage. The economy is in a recovery and that favors demand for the PGM produced by SWC. These metal are also precious. Platinum has long been considered sacred in Japan. So, along with the increase in gold buying there, it's reasonable to expect an increase in platinum accumulation as well.
From a price standpoint? Can only speak for my own entry basis which is now $14.25 after some intra-day fast footwork yesterday. FWIW, and it's still only one person's opinion, expect to easily double my money in the next 1-2 years in this stock.
Well, I'm gone for the day. Just remember everybody - enjoy investing & trading. It's always more fun if you don't go beyond you risk tolerance. Making money always comes 2nd.
Cheers,
Isopatch |
