Correction to the above… (VZLA) Vizsla Resources wasn’t settled yet when I posted that and it ended up closing up 96.4% to $2.20 today.

That is one thing about great drilling news, it still moves the markets!

I bought Vizsla around Nov 2019. Sold out yesterday before the halt….NOT!!!

haha! David did you trim back any of your Vizsla yet?

I’ve sold 2/3 at this point and even though I’m a fan, I do question whether it’s getting a bit ahead of itself here. Then again, they have put out some great drill results, and do have a 2 year option to acquire that mill and that would allow them to jump right into production. Still if it keeps climbing I may finish selling the position, book the win and keep an eye on it.

I sent a response that flew off somewhere. I will write another if it doesn’t appear soon.

I sold about 7% last week. My initial buy was on Nov 25, 2019 and made 12 buys ending June 24, 20. Average cost around .39. I have thought about selling more profits but many of stocks with gains are pending confirmation of past results. I have a tendency to buy when things are good (good drill results) and sell some or all when not. As result, I have some outsized GBR profits and now Vizsla and Pure Gold on the way. Need to think about where to put them. I have been running them through ELY. Other message is similar if it shows up.

David – Thanks for sharing your strategy around Vizsla and your strategy likely makes more sense than mine for the exploration plays. Most of my PM mining positions are in producers and developers, where I hang onto the core position for a longer period of time, but trade around it — selling 20-50% on big technical runs or around key news, but then buy back those 20-50% positions after the stock pulls back down 23-38% at Fibonacci retracement levels. I just trimmed back some Pure Gold recently for example as it was growing too large in my account and has made a big move, but I don’t dare sell it all during their “Golden Runway” phase heading into production, putting out continuous good drill results, and with the potential still to be taken out by a big boy producer.

However, with explorers, I’ve been burnt a few times in the past, and tend to grab the gains and get out moving on to the next one. With explorers doing more initial drilling, and without a solid resource estimate, I am more tempted to buy the rumor and then sell then news when people pile into a stock in a frenzy. (for example there were 190 people hovering in the Vizsla room over at ceo.ca earlier today which tells me it’s getting a bit frothy).

The advantage to locking in gains on a drill play, is that you know you won big, but the downside is leaving money on the table if the stock price just keeps surging beyond a logical valuation into a nosebleed valuation (which we see all the time in mining stocks).

The reality is that nobody ever got hurt locking in gains on any stock or investment, but there are plenty of bagholders in mining stock explorers that overstay their welcome, watch the stock go up in a parabolic move, and then turn back down retracing the other side of the parabola for a round trip and erasing all the gains (or worse the stock crashes to much lower levels and they get their clocks cleaned – especially if they had too large of a position size in the drill play).

At one point earlier today Vizsla shot up past a number of stocks in my portfolio, even surpassing Dolly Varden, Alexco, Americas Gold & Silver, Silvercorp, Impact, and Coeur on the Silver side of things, so for me I felt better trimming it back by another 1/3. I’ll admit that it did cross my mind that if I hadn’t sold the first 1/3 on June 26 that I’d have had and even larger position to liquidate today. VZLA had gapped up so much on the chart after the news on June 24 that this also seemed like the prudent thing to do to pull a few chips off the table 2 days later. Maybe I just need to get less conservative on my valuations in this bull market mania and just plan for outrageous shareprice valuations as the norm. 🙂

At any rate I have a 9 bagger on my remaining Vizsla position and it’s now my 19th largest holding, so we’ll see where it goes from here. If it goes up higher in short order, I may just liquidate it, but with the plan of getting back invested when it eventually corrects. I’d still like to ride it higher into development and see if they take the option on the mine and pathway to production, so I’m not talking about selling it for good, but just for the short to intermediate term until some of the fizz comes out of it.

> David, like you I’ve been storing some profits in the Royalty companies. You mentioned you were running profits through Ely, and I’ve been doing the same with Maverix and now Metalla. I have positions in Sailfish and Golden Valley as well for the royalty plays, but I don’t trade in and out of them as often. Maverix I’m in and out of partial positions all the time as it is on the big board and there trading fees. To some degree I use Silvercorp as a profit storage tank as well and will beef it up in size to hold profits trimmed on other companies, and then pull those funds back out when I want to buy another position. I also have some cash reserves built up on the sidelines about 10% of my overall portfolio, which is the most I’ve had in a while, especially considering my account continues to grow week after week. While this gives me some peace of mind, I’m starting to wonder if I didn’t pull profits in some stocks too early. If we have a couple of down days in sequence, then I may fire off a few of those rounds just to get them back in the mix.

Ever Upward!

The only right answer to when to take profits, is when you look back in hindsight and say “that went well’ or “what was I thinking”. I am going through a process of relearning. For the first 40 years or so of my investment life, I used to pick some general market stocks and and watch it long term as it grew. I can’t remember most of them, but one of the first was Holiday Inn. It was a new chain of motels and allowed you bring your pets and all new facilities. I bought some of that and a few years later, they had a whole bunch of motels and money.

Then I decided to try penny stocks 40 years later with the beer money. That was an experience. I Read those PRs, watch a little excitement and then hear about when their trial date was.

Then seeing that all markets were that way and the massive debt, I headed toward the miners. Got hooked, but in the back of my mine there is always the idea that no matter how good things go, there are more out there that prefer I have nothing, including the government.

That led to shorter trading to protect gains. But, I have not got short enough or quick enough. I have a tendency to trust those with the technical skills and still do. But, I recognized the technical trends are only as good as the last market day. I still trust that markets are somewhat free, but computers tell me different.

So, you shouldn’t second guess your discipline in taking profits as it is the method experienced traders use to guarantee they keep their marbles. I have ridden too many up and down with First Majestic being a classic example. I bought it at $3, rode it to $25 and rode it back down in 2016. Each day I would say that this is a bull market, things are great, this is just a slight correction and we will soon be passing $25 again. Well that didn’t happen.

When you ask today if I had sold any…I have been thinking all day since that I better get a plan other than pat myself on the back. You know that most of us find buying easier than selling. The move this year has put me back where I was in 2011…maybe a little better. But, everyone that were in the general markets have had 10-11 years of unending gains. What is to say the miner bull gets side tracked again and this is it…other than it totally does not make any sense that miners would not be valuable in the years to come. But, the bailout money is not going to the miners…we don’t know where it is going but we know the markets are being pumped by the Fed….WITHOUT AUDIT.

So, in conclusion of making a short story…long, I really need to move some off the table and to something that doesn’t fall off a cliff but rolls down a hill, while keeps moving forward if the bull hasn’t gone to the next pasture.

Yours words mean a lot. You have a way of educating while offering a platter options for those of us lesser skilled. It is a talent and a behavior that has been seriously lacking during recent years in our society. You help your fellow human beings when there is no requirement to do so. It shows strength of character and sacrifice. We thank you.

Thanks for the kind words David and you made many solid point there and I feel the same way about your contributions, and really most of the contributors here at the KER. I make mistakes all the time, but less than I used to after learning a little bit through the school of hard knocks.

Personally, I most value learning through others sharing their stories of their personal mistakes and their personal successes, and then looking for the patterns & behaviors that led to both kinds of experiences. I absolutely appreciate you sharing your experiences, and how your strategy changed over time and it was likewise instructive.

After re-reading the presser and seeing someone over in the VZLA chat room repost this, I’m still concerned I pulled profits a bit too early:

“With a 14,500 metre drill program underway, The Company will continue to drill the Napoleon vein system and the multiple other drill targets in vein systems across the Panuco district. Our second rig is currently turning at Cordon del Oro. Being fully-funded, Vizsla intends to provide steady drilling news flow over the summer months.”

____________________________________________

Also another contributor had this response to today’s press release:

@mrcashflow – “What are you talking about @rahul, grades are similar? Seriously, this is perhaps the best individual drill hole to be released by any listed company on any exchange so far in 2020. These results are spectacular, and if the core was full of gold instead of silver this stock would be north of $10 today, so don’t come on this board comparing your “pump” company to this one. There is literally “no comparison”.

@mrcashflow – “Gap fill, I’m sure that’s not going to happen any time soon, its always nice to dream of a cheaper entry price. That chance vanished just before noon when we pulled back to $1.75 on heavy trading volume with long term investors locking in gains. The only gap you will see is the one in the morning open, once the news of this drill hole filters throughout trading desks and platforms..Watch the mining newsletters hop on this no brainer..Good luck getting in under $2 short term..Especially with more holes to come in a strengthening bullion market.”

That’s what makes it tough. Vizsla reminds me of Silvercrest, Kirkland Lake and Great Bear. KL and Silv financed a lot of my portfolio. KL is all gone and Silv pretty much gone. On the other hand Great Bear and Vizsla pretty much all there. The difference may be exceptional performance during a Bear market vs a Bull market. Maybe can ride a little longer in a bull market. Maybe TPTB are forced into a position of not limiting PM bull runs to 6 months as they have corrupted the general markets beyond recognition. Maybe its different this time and water flows up hill and that is why positive expectations of normality makes reward risky. We are playing a game where one side changes the rules.

I am also sitting on Freegold and Azimut to see if they can duplicate their quick moves. I got in late but both have gains without follow on results. I elected to hold to see if they can reinforce their moves like Sil and Gbr. I now have increased my chances to learn a lesson or reinforce bad habits .

Yes, when you bring up companies like Kirkland Lake, Silvecrest, and Great Bear – the best in class companies, the most rewarding strategy was to hold on for the long haul, like Marty here at the KER did. Kudos to you David for having the gumption to hold tight and capture the larger move, as that in itself is an important discipline.

There are those rare cases where a mining company has such a great property that is just keeps moving higher and higher like those mentioned, or like what Atlantic Gold or Wesdome did. Wallbridge has had a similar trajectory the last 2 year as well. I caught a similar ride up in K92 Mining from 2018 to earlier this year, where it just kept putting out better and better news, and kept climbing higher and higher.

With Vizsla Resources, we are still a long way from knowing if it will turn into one of those “best in class” companies, but they are really off to a bangup start with their first 2 main exploration releases the last few weeks, and that was a very impressive drill hole from yesterday’s news. They are cashed up and have so much exploration in front of them, and such a large following now, that I may hang onto my remaining position, and just buy any corrective dip that may come from a technical correction or any future drill holes that are just good but bonanza.

David – You may have the right idea of treating Vizsla more like a Silvercrest, but we’ll need to see how the future exploration goes to see if that is what is playing out. Most mining companies end up disappointing and the initial drill holes that get the investor base excited, are often followed up by a larger program that doesn’t enthrall the mob quite so much, and gravity sets back in as the shareprice corrects back down. However, there are times where the mob is correct, and there is somethings special going on, and what we saw yesterday was the kind of energy I rarely see in this sector. Freegold that you mentioned has has that kind of energy recently, and when Novo did the metal detector videos and the market erupted, it was a similar kind of energy. Thanks so much for making that analogies you did, as I may have to approach Vizsla a bit differently than just a drill play… this one may go the distance.

I hate to say it……….most of the ding dongs……do not deserve to be called a goldbug… 🙂

This is my third round trip……..on this coaster…….so, I think I have a little insight… lol

The Washington Post has 3900 pages list…..check it out…
Looks like there are names, and amounts of the loans….

Thanks…what’s interesting is that list is not matching up with the files I have.

That does not surprise me……there was a lot of money going out quickly…..
When the pentagon goes missing $90 Trillion…..what is $3Trillion missing with no names. lol

Remember…….Fasbe 56, the rules went out the window…. LOL

I got the files that contain everything. The WAPO link only has the ones over 150K but it is a good start. For the area I live in I can’t believe all the money that was handed out. Freaking outrageous!

Ditto……….on FREAKING OUTRAGEOUS………..
That’s one reason, taxes are a fraud…….

Thanks, Jerry.

It looks like for the files at SBA Web site only the over 150k lists the names! So I just got those. I will see if they match up to WAPO. But as I understand it this program is still going on so the numbers WILL GET LARGER.

PPI………loans should have been sent directly to the tax payer in the amount of $15,600 in stead of the companies…..people would have spent the money…..

I tell you Jerry…I’d like to have the names for all the “loans.” Don’t know why they’d exclude the under 150k. Hey, I just got done doing my taxes! Since I have to pay, I want the NAMES!

Yes, the numbers are going to be larger………..there will be another round coming….depend on it…..

Just file a FOIA……….the govt. will get right back to ya……… 🙂

Hey Jerry, I was wrong about WAPO. Their site only lists the over $1 million so no wonder the numbers don’t match up.

I’ve got the 150k and over off the SBA Web site and it lists the NAMES! AND I AM SHOCKED! For what I am seeing for my area….never knew there were so many WELFARE QUEENS!

But Jerry…I GOT THE NAMES AND ADDRESSESS…FOR THE 150K and over crowd…in my area…maybe I ought to get an auditor and knock on a few doors….

Hey Jerry, if you give me a zip code or zip codes or city name or city names and state I will generate a file for you and put a link to it on one of those free file hosting sites…if you want the NAMES of the 150k and over crowd in your area…and you can load it into your spreadsheet and see for yourself…then numbers will shock you.

The 150K club file is very big…so may freeze you spreasheet program when you try to search it…

But I can give you a subset of that file…for the area(s) you are interested in…

Let me think about that one……I might ask you later….The list might give me nightmares …..some things are just better not knowing….I am sure there are a lot of donor’s names, and insiders on the list…..

OK. The file for the $150k and over crowd is about 131 megabytes and has 661,219 rows. In Open Office it freezes when I try to search but this is an old PC. So I just made a file of the areas I needed from the csv using the grep command. Haven’t tried to load the 131 megabyte file into my tablet which has Excel. It’s much newer and has 2 times the RAM.

I tell you Jerry…in my area it looks like the goooberment was handing out money like it was free candy…in the 150k and over file I see in my area everyone from sole proprietors getting 150k and up to breweries getting 5-10 million.

BUT I have the NAMES AND ADDRESSES…

Jerry…if you get the chance…listen to the latest Peter Skiff podcast..talks about the PPP…it’s crazy.

And check this out…even the Israeliars got PPP money! What a freaking joke.

https://www.antiwar.com/blog/2020/07/07/israel-lobby-orgs-grab-covid-19-cares-act-funds-for-itself-idf-facilities-and-sketchy-israeli-companies/

Paycheck Protection Program…for the Israeliars! What a joke!

Jerry…the PPP is NOT protecting YOUR paycheck!

Just another corrupt goooberment “program.”

Great to have duel citizenship…….

I tell you Jerry…I have to wonder if Owl has any clue as to what’s going on…with the PPP stuff…or the other bailouts…if so…does he care? What about Jimmy…maybe I ought to make a PPP spreadsheet for OWL’s area…

Ebo……..you should …..help him out….

Ditto……….on ripe with fraud…..and a big rip off……..

I sent you a message, ….went to moderation……
concerning the list…..hold on to it……

Owl is not interested….”SO WHAT”……lol

On July 8, 2020 at 8:32 pm,
cfs says:
https://youtu.be/1eR0ckpJ3bk

Reply to this comment
On July 8, 2020 at 8:39 pm,
OOTB Jerry says:
Now that is a DAMN GREAT SONG…………DANG SPOT ON……Wake up sheeple…..

Reply to this comment
On July 8, 2020 at 8:46 pm,
OOTB Jerry says:
I may steal this tape………and use it as a theme song going forward…. 🙂

Reply to this comment
On July 8, 2020 at 9:11 pm,
Chartster says:
Great song, CFS.
Had to watch it twice.

Just reposted this for those who did not get over to the political section……EBO….this is for YOU…. 🙂

That was a smart move by Sprott, Inc to buyout the Tocqueville gold fund, but Eric really hasn’t had much to do with Sprott, Inc in a number of years. I’m sure he still has shares in his old company though and likely has exposure that way. Most of Eric’s PM exposure, in his own words in interviews is in the physical and in the 60 or so PM mining companies he’s invested in. Makes sense to me, as the miners have the metals in the vault of the Earth instead of a bank vault, and they’ll have far more leverage to the upside than the physical metals.