Time for an update to the model portfolio of resource stocks. I had an order filled for JNR Resoucers, a Canadian junior explorer of uranium properties. I bough 2000 shares at $0.35, and it’s since ticked up to $0.44. I’m not entirely in love with this stock, but it fits several criteria like a price/book ratio of 1.28, not overlarge stock float of about 100 million shares, and active drilling operations on drilling on 7 or 8 properties in North America. They’ve teamed up with Altius Minerals, a successful and well-regarded company active in Newfoundland, on their primary Topsail project. There’s a good discussion on JNR in the Financial Sense Newshour podcasts on uranium broadcast aired back in November (Part 1 and Part 2), that are well worth a couple hours of your listening time.
The total returns in the portfolio are actually a bit higher than the 60.86% being shown. The Google app is not accounting for starting capital. I added $2000 in cash back in December, and since reinvested the proceeds from selling half the Tyhee position. I really need to put this on an excel spreadsheet. Otish Energy, another uranium junior, is down a bit from my original entry point. I might well add to the position. It’s got good prospects, and I don’t mind picking up shares on the way down. PW Dunn at the Righteous Investor has a good post on the strategy for averaging down on stocks you like (“Jeet Kune Do Investing: The Case of Canadian Junior Oil and Gas”), as well as some good thoughts on individualized investing styles. I agree with the sentiments in the post. If you’ve done your research and you perceive a company to be a good value, letting the market spook you into selling out at a loss when the share prices are being pounded is losing proposition. It may be just an opportunity for better bargains.
I’m watching a number of penny mining stocks Canadian natural resource companies, and the Google portfolio is OK for this. I’ve set it so the purchase price of a 100 shares is actually my target price, and monitor how close the the price is coming down by monitoring the far right column. Right now it looks like Virginia Energy (Uranium) and North American Gem (thermal coal) are inching down to a target buy. Stay tuned.
As always, none of the above is meant to be any type of investment advice, merely entertainment. Readers are advised instead to do their own research, make their own decisions, and live with their own mistakes.
Cool, penny stocks! I did a few in the early days, but didn’t stick with it. The volatility and bid/ask spreads made it tough for me to make money, but honestly, I didn’t put in the time to research thoroughly. Looks like you are – good luck!
Darwin’s Money recently posted..Imagine a World with No Fiat Currency Here it Is…
Hi MR, on the penny mining stocks, volatility and thin trading volumes are a fact of life. But you’re right, the way to counter it is with informed patience.
One of these days I’ll figure out why you keep calling me MR LOL! I do enjoy your posts either way!
Darwin’s Money recently posted..OUTRAGE in Wisconsin- Dems FLEE the STATE to Avoid Union Vote
I’m absolutely spellbound by your penny stock wheelin’ and dealin’! But all the greens tell me you obviously know something others don’t!
Great going 101c!
MoneyCone recently posted..Did You Beat The Market- Mr Investor
Well, thanks MC, but with inherent volatility the pendulum could swing the other way quite rapidly.
That’s an impressive return! I’m glad your penny-stock investing is going so well!
Roshawn @ Watson Inc recently posted..The Impossible Question- Just Who Is The Middle Class
Hi Centavos: thanks for the mention. BTW, I wrote the post really to justify the other side of the coin: averaging down, I’ve done. But it seems momentum buying is also justifiable in the junior oil and gas sector according to Schaeffer. Now I imagine the same hold true in the Canadian mining sector. Consider the case of DGC (Detour Gold): I bought some in a public offering at $14.25. But with every assay the story keeps getting better. Now some are saying it will be taken out by a major at $40 or more (closed today @32.40). I made the mistake of selling a covered call on my shares, and that cost me a net of $4.49/share to buy back.
Hi PW – Detour being taken out by a big player would not be surprising. The majors are going shopping and paying handsome premiums for ounces in the ground. They might be better served by increasing their puny dividends. Now *that* would get some attention from investors.
Awesome stock selections. Obviously you are not the “average investor” –the person most people would agree should probably not be doing what you are doing.
That extra time put into the effort is showing, as is your knowledge.
Here’s hoping you continue to make a killing with your picks. Awesome.
BP, I’ve said this before, this may not be for everyone. Depends on risk tolerance. However, I’m fairly risk averse. Much of our capital and savings are in cash or cash-equivalents.
The advice of holding on to stocks on which you have done plenty of research, instead of selling low, is solid and can be applied to larger stocks as well. By the way, I enjoy the penny stock posts. Would be cool to see a primer or overview, as you’re clearly more experienced in these investment vehicles than the typical investor.
Hi Squirrelers, I’m working on a post to summarize free resources on penny mining stocks.
You are doing fantastic. Think of all the farmland you can buy with your profits!
Everyday Tips recently posted..Thoughts For Thursday- Streams of Thought
Hi Kris – I’m trying to sweet-talk Mrs. 101 into another 20-40 acres, without making much headway. Maybe in the next couple years. There are some pundits that keep talking about deflating asset prices like real estate, but it doesn’t seem that applies to farmland.
Wow, you are totally rockin’ in these stocks! Well done!
I too would like to understand your penny-stock, err, junior resource company approach, not that I’d copy it, but I’m very curious. Do tell us oh great one!
My Own Advisor recently posted..TransCanada 5 Dividend Hike
Post is coming up… stay tuned.
[...] Centavos: Centavos Model Portfolio Update – February 16th, 2011 – I like this update for the razor focus that 101 has on this area of investing. You [...]
[...] 101Centavos provides an update Centavos Model Portfolio Update – February 16th, 2011 [...]
Amazing returns. I have to admit, I don’t know much about this sector, but can’t deny green is a pretty color to look at.
One general question, since your results are stellar, do you think of putting more capital into play to get even more returns or do you strictly use a certain percentage of your funds for this purpose and stick to it? Continued success.
Buck Inspire recently posted..Can Stocks Outperform an ETF
Hi BI, thanks for stopping by. I’m more risk averse than the portfolio would suggest. A few hundred dollars here and there are good enough. On some of those big winners, the temptation is always there to look back and think, boy if only I had bought 50,000 shares instead of 2000, how much I could have made. Dangerous thoughts.
I wrote an earlier post where I laid my current allocation.
[...] 101 Centavos with ‘Centavos Model Portfolio Update – February 16th, 2011‘ [...]