buying DJE and NEM, plus a recap of our trades thus far and an update on current holdings
This blog was begun in August of 2006 after our small research and investment group thought it would be fun and educational to publicly diarize our buys and sells.
As of today, the average gain of stocks sold is +38%
The average hold time has been 15 weeks, which suggests an average annualized gain of 162%
Of those sold 8 out of 40 have been losers, or 1 in 5 (20%).
Among the losers, the average loss was -12%
Of those sold, 80% have been winners including :
7/40 gained 50% or more, or nearly 20% of calls.
5/40 gained 100% or more, or 1 in 8 calls.
1 gained over 250%
None of the above are double-counted, which is to say that if a stock was sold for more than 100% gain it is not also counted as a more than 50% gain.
All calls can be seen in this blog posted in real time and required no quick trading as the calls are posted outside market hours. Also bear in mind the figures do not include our very timely and accurate calls on gold, silver, platinum, uranium ("we are extremely bullish uranium" was written in August of '06 at $47.50 and uranium is currently at $113 and debuts trading on NYMEX tomorrow), and the US dollar and housing market.
We take pride in the fact that these averages have remained consistent through the history of this blog as can be seen in past updates, and we leave it to the very curious to calculate what these gains would amount to when factoring the compounding of one winner into the next.
On those currently still held, numbering 23 positions, the average gain is 35% including :
1 stock +222%
1 stock +137%
3 others +50% or more
Only 4 of those 23 current holdings are in the red, leaving 83% winners.
Of those held for longer than 3 months, 53% are currently at least 30% above our entry price.
We are most bullish on the stocks we hold that are doing the best, especially in light of choppy markets since late February.
Quaterra Resources, QTA in Canada, is at an all-time high and we hold it per this blog at a 137% gain. Quaterra is a junior exploration company focused on making significant mineral discoveries in North America.
Also at an all-time high is our long-term favorite Hammond Power Solutions, HPS.a in Canada. We hold an initial position in Hammond at a 222% gain plus an additional position at a 35% gain. We also made a 23% gain in two weeks on a recent swing position, all per this blog.
Hammond is a growing and profitable supplier of transformers and related magnetic products. Be sure to click the link above to marvel at their excellent progressive earnings and ponder the bright future of this company.
Mega Uranium, MGA in Canada, remains our uranium stock of choice and we'll be adding below $7.00 for long-term holdings. We hold it at a 24% gain per this blog. It has recently pulled back from a big jump to its all-time high in early April.
Mega Uranium is a rapidly growing, internationally diversified, mineral resources company focused on acquiring and exploring uranium properties worldwide. Mega has uranium resources totaling 47.3 million pounds U3O8 in Australia, and active uranium exploration projects in Australia, Argentina, Bolivia, Colombia, Mongolia and Canada.
Cardero Resources, CDU in Canada and CDY in the States, is our favorite speculative gold & copper play which we hold at a 21% gain per this blog. Cardero seeks to discover and fast track the development of its dynamic, multi-commodity portfolio of high-quality precious and base metal prospects in attractive under-explored regions of Mexico, Peru and Argentina.
Avalon Ventures, AVL in Canada, is just below its 9-year high which was marked in late March and we hold it at a 24% gain per this blog.
Avalon Ventures is a Canadian junior mineral exploration and development company with a primary focus on the rare metals and minerals that are in increasing demand for high technology and environmentally-beneficial applications. These include lithium, beryllium, indium, gallium, rare earth elements (“REE”) such as neodymium and terbium and rare minerals such as calcium feldspar.
Avalon presently owns five rare metals and minerals projects in Canada, three of which are at an advanced stage of development. These are the Separation Rapids lithium minerals project, the Warren Township calcium feldspar project where bulk sampling programs are in progress, and the Thor Lake REE-Beryllium project.
We believe the five companies above make for a good balance of value, speculation, and sector and geographic diversity and thus in our view would be excellent additions to the aggressive portion of a portfolio. So too these further choices from our current holdings, listed below.
Uracan Resources, URC in Canada, is our most recent entry and while we view it as currently consolidating within an up-trend begun in September of last year, we'd be especially bullish and likely adding to positions on a close above $1.00
Uracan Resources is exploring for near surface, bulk tonnage uranium deposits in Canada, as this style of deposit can be developed quickly and inexpensively. The company's first two projects have abundant historical data showing several pounds U3O8 per ton over large areas, are easily accessible and have year round access. Management has an excellent track record in creating value for shareholders. Several of their exploration companies have been purchased by mining majors, and they have put mines into production for a major mid-tier gold producer.
Red Hill Energy, RH in Canada, is a stock on which we remain very bullish above $1.00 We hold our core position at 81% gains and recently sold a swing position for a 64% gain in two weeks per this blog. Red Hill might be a buyout candidate per this press release.
Red Hill Energy is a publicly traded energy company that engages in the exploration, development and (currently) pre-production of advanced coal and uranium projects. The Ulaan Ovoo Coal project has just had it's scoping study completed and shows the potential for a 20 year highly profitable mine. With 206.2 million tonnes of high quality bituminous coal to NI43-101 compliance, the Ulaan Ovoo project continues on it's path to towards production.
The newly acquired Chandgana Tal Coal project has historical data showing 90 million tonnes of sub bituminous coal and Red Hill plans to move the resource to NI43-101 standards. Red Hill is joint ventured with Mega Uranium Ltd of Toronto and has 11 Uranium properties covering 216,170 hectares. The results of field work conducted in 2006 provided Red Hill with a number of targets for advanced exploration with 7 Uranium properties selected for further work in 2007.
We now buy Dejour Enterprises, DJE in Canada and DJEEF in the US, as both an oil & gas and uranium play which we feel has very compelling prospects per their recent finds detailed here and per this recent news release.
Dejour Enterprises Ltd. is a micro cap Canadian company focused on oil & gas exploration and production with a significant investment in uranium discovery. The company acquires high-impact energy assets and strategically monetizes them through partnerships and co-ventures to limit exposure and enhance returns.
Dejour has significant holdings in three of the world's premiere energy resource regions. This includes 288,000 gross (60,000 net) acres in the Piceance and Uinta Basins, a vast natural gas play in North America; and a major interest in Titan Uranium Inc. [which we currently hold at a 41% gain per this blog], with 1.44 million acres in the Athabasca and Thelon Basins, the world's most recognized areas for uranium exploration. Finally, the company is pursuing high impact natural gas opportunities in Canada's Western Sedimentary Basin, known as the Peace River Arch Projects, comprising of 49,000 gross acres.
We also buy Neo Material Technologies, NEO in Canada.
Neo Material Technologies is a producer, processor and developer of neodymium-iron-boron magnetic powders, rare earths and zirconium based engineered materials and applications through its Magnequench and AMR Performance Materials business divisions. These innovative products are essential in many of today's high technology products.
Magnequench's neo powders are used to produce bonded magnets, generally used in micro motors, precision motors, sensors and other applications requiring high levels of magnetic strength, flexibility, small size and reduced weight. Rare earth and zirconium applications include catalytic converters, computers, television display panels, optical lenses, mobile phones and electronic chips.
The Company is headquartered in Toronto, Canada and has approximately 1,300 employees in 15 locations, across 10 countries. Neo posted $0.33 earnings per share (diluted) in 2006.
Quaterra Resources
Hammond Power Solutions
Mega Uranium
Cardero Resources
Avalon Ventures
Uracan Resources
Red Hill Energy
Dejour Enterprises
Neo Material Technologies
In closing, we offer this good read from the Contrary Investor site.
posted by C. Guinness @ 5:38 PM
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