If you look at the wts I bought, and the prices I paid, it is easy to see the 400 to 500% gain, although I am sure some people think I am fudging. Fortunately, I was pounding on enough people to get into these wts on the SLW and BWR threads on SH when they were the prices I posted, that many people know when I bought.
The one exception was the HBM wts which I sort of bought as I walked out the door to Hawaii. For .05. Anyone could have bought them for .05 for quite a long time! It took a while for me to figure them out, being 30 to 1 was still a good deal-lol. I am a bit slow. Especially if I have been smoking-lol.
On the BWR thread and SLW thread I posted many posts trying to explain how wts work. The hardest thing to explain is intrinsic value vs time value vs leverage value and with the SLW B wts being all time and leverage value, because they were out of the money at the time, it was very hard and I was called a liar by one person when I said that going past the strike price was being in the money -lol. She insisted one had to show a profit to be in the money-lol.
The first day one could have bought the B wts for $1 all day long. It shows how many are confused by wts. I overlooked them at first and bought them at $1.67. They went to $7.
In fact the first day of issue one can often get bargains on wts because many people will sell the stock and buy the wts or sell the wts and buy the stock. The EDR wts are a perfect example. I bought a ton of them the first day for .75 and got a few others into them. I should have sold at $1.59, but rode thme back down-lol.
ECU was just a lucky hit, but that goes back to owning a basket of stocks. I expect to hit 1 or 2.
As mentioned, going from wts to juniors with deposits and drilling is a formula one can use every time there is a breakout.
The reason being, that the majors will move right with the metals, but the juniors will not. In fact juniors can actually go down for a bit as "pros" (the first in) will take their money out of juniors and put it in the majors in the beginning.
One uses exploration stocks during flat or down metals prices because they are the only ones that will move. And one in fact can often find the gems better when all stocks are in the drink.
There is no lag with majors at all, they move day to day with the metals. So if one holds wts on majors they get the big wheel turning the small wheel (leverage-lol) from the get-go and then one just moves over to the juniors.
SLW wts flattened out around $1.75/80 and I sold them all from the .30 range and then picked up the juniors.
The reason the majors stall out is that they can be easily quantified. With the majors you are speculating on the "METAL", with the juniors you are speculating on the metal and the drilling!
There is a right way and wrong way of playing this game and the specific stocks are second to the method, in my opinion.
Anyone who doubts this just go look at a bunch of the stocks mntioned today and look at the charts for the last year. They will pretty much all look alike. |
