First let me say the folks on the thread below may make the most money (percentage wise) of any invesitng group on SI. Maybe anywhere? For reasons I point out below. I have been trading mining shares for 30 years.
Subject 27370
There is a basic strategy known by folks who trade mining stocks. It goes like this:
When the metals are moving up we buy Canadian wts (or US options) on majors. We are only looking for proxy vehicles, so we do not pay a lot of attention to any individual company per se, but rather to protect our investent we diversify.
Right now my four primary wts are FR B, EDR, PTM and TRX wts. Almost all of us on the thread own theses four wts.
When the metals stop moving, the majors will stop moving. The reason being that majors are pretty easy to quantify. We then move down to junior producers, or juniors with good ore bodies, and then we keep moving down to good exploration stocks and finally goat pasture.
In 05,6,7 many of us made several hundred percent of our entire portfolio with wts on companies like HBM, BWR, Rio Narcea, BNK, etc. BNK wt recently gave some holders 30 and 40 baggers. 10 baggers are common.
If the move up lingers, then we start playing area and exploration plays. Canadian wts is an esoteric financial play where we have a large advantage over the Harvard MBA's because it requires specific knowldge and working around lack of liquidity prevents computer or algorithiums trading working.
Many of the group on that thread have been together for years, so we know each other well. Onepath, shootfirst and Ted Nancy, Max, uptick, lone clone, Mario, etc are all old pros and really now their stuff.
Good luck. |
