The 80% Club

News and comment on investment in mining
Forum rules
Please read: 24Knews Forum Rules

The 80% Club

Postby Ziknik » Fri Mar 23, 2012 11:07 am

A number of pm mining shares are taking a beating out there . I am sure there is BIG money to be made for those who are prepared to research and select the right buying opportunities.

But, I dont have the knowledge or time to pick the best shares out of the thousands available.

So I'm going for a much simpler (stupid er) plan. I'm going to buy the dogs and then sit with my fingers crossed untill the share price recovers.

'a dog' = Any pm share who's price has fallen 80% from the 2010/11 high

'recovers' = The price returns to the 2010/11 high

I need to wait until April before buying as I'm going to use ISA accounts.

I'm picking out a shortlist until then.

I will use this thread to track the shortlist, purchases and sales.

Is anyone else up for this?
"we needed a fightback and a fightback is under way"
User avatar
Ziknik
Half Krug Member
Half Krug Member
Progress to next rank:
36.5%
 
Posts: 1294
Joined: Sun Dec 06, 2009 5:28 pm

Re: The 80% Club

Postby Pixel8r » Fri Mar 23, 2012 11:29 am

I can see the attraction of what you are proposing but think it is the wrong approach. There is good reason that a lot of miners have taken a beating out there, in that there is too many miners & not enough deposits. This podcast by Dominic Frisby is worth a listen as explains The 18 Stages Of Junior Mining Ruin.



My preferred approach is to identify miners who are junior producers with decent deposits, that are using organic growth to expand those deposits. Sure these have been hit as well along with other miners, but I don't think you will find many in the 80% club.

I get the feeling the 80% club will just be full of juniors that will end of going bust. Why not consider someone like Pinetree Capital if you haven't got the time or inclination to research?
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: The 80% Club

Postby Ziknik » Fri Mar 23, 2012 12:10 pm

Thanks for the link. It's a good informative interview.

I'm sticking with my plan though. I'm seeing this as a 2009 opportunity where I could have bought anything and 5 bagged (or more).

I accept a lot of my shares will go bust but I only need 1 in 4 to 5 bag and I'm quids in.
How often does a 1 in 4 risk reward balance like this come round in a life time?

I bought around 50 producing miners last year so I am not looking for anymore of these shares. I'm heavily under water on them but relaxed at the same time as I can afford to lose it all.

There are 6 filters I'm placing on my shortlist.
1. In the 80% Club
2. Survived 2008/2009
3. Are not producing regular profits (because I have enough of these shares)
4. Are Pm (or pm related) shares
5. ISA-able
6. Not had a recent consolidation or split.

I'll put pine tree on my list, it could be in the 80% Club soon
"we needed a fightback and a fightback is under way"
User avatar
Ziknik
Half Krug Member
Half Krug Member
Progress to next rank:
36.5%
 
Posts: 1294
Joined: Sun Dec 06, 2009 5:28 pm

Re: The 80% Club

Postby Pixel8r » Fri Mar 23, 2012 12:24 pm

Well now you have explained things your plan does make more sense. I agree that this is looking just like the beginning of 2009 currently, some of the stocks I bought then 10 bagged over the next couple of years, so I hope to see the same again.

I have a load of producing juniors as well and wanted a bit more risk last year, so have bought into Pinetree, Cosigo, African Queen & Gold Bullion Dev. They have all proved to be dogs so far, but then everything has been down anyway. The ones that I am most positive about are Pinetree and Cosigo.
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: The 80% Club

Postby Ziknik » Fri Mar 23, 2012 3:55 pm

So far I have found the following shares. These are all in the 70 or 80% Club

Solomon Gold
Rusoro Mining
Guyana Goldfields
Crocodile Gold
Aura Minerals
Quaterra Res
Great Basin Gold Ltd
Victoria Gold
Carbine Resources
Dynasty Gold
Atac Resources
Niblack Mineral Development
Lake Shore Gold
Exeter Resource
Sunridge Gold
Full Metal Minerals
Mansfield Minerals
Goldex Resources

I'm looking for 22 purchases in total.
"we needed a fightback and a fightback is under way"
User avatar
Ziknik
Half Krug Member
Half Krug Member
Progress to next rank:
36.5%
 
Posts: 1294
Joined: Sun Dec 06, 2009 5:28 pm

Re: The 80% Club

Postby Capitalist_Pig » Fri Mar 23, 2012 9:17 pm

.
A lot of the time, the stock market is just like Tescos ... You just gotta find the value packs, reduced to clear, and buy one get one free offers!
User avatar
Capitalist_Pig
Silver Eagle Member
Silver Eagle Member
Progress to next rank:
9.7%
 
Posts: 91
Joined: Mon Nov 29, 2010 1:23 am

Re: The 80% Club

Postby Pixel8r » Fri Mar 23, 2012 9:25 pm

Capitalist_Pig wrote:.

Good point :)

BTW the "x" in the right hand corner of your post deletes it (limited to 360 minutes).
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: The 80% Club

Postby Ziknik » Fri Mar 23, 2012 9:45 pm

AND

Northern Dynasty
"we needed a fightback and a fightback is under way"
User avatar
Ziknik
Half Krug Member
Half Krug Member
Progress to next rank:
36.5%
 
Posts: 1294
Joined: Sun Dec 06, 2009 5:28 pm

Re: The 80% Club

Postby Ziknik » Mon Mar 26, 2012 8:19 pm

AND

Exeter Resource
ALEXIS MINERALS CORPORATION - This one is in the 90% Club!
"we needed a fightback and a fightback is under way"
User avatar
Ziknik
Half Krug Member
Half Krug Member
Progress to next rank:
36.5%
 
Posts: 1294
Joined: Sun Dec 06, 2009 5:28 pm

Re: The 80% Club

Postby Ziknik » Wed Mar 28, 2012 1:08 pm

And Orvana Minerals J
"we needed a fightback and a fightback is under way"
User avatar
Ziknik
Half Krug Member
Half Krug Member
Progress to next rank:
36.5%
 
Posts: 1294
Joined: Sun Dec 06, 2009 5:28 pm

Re: The 80% Club

Postby Ziknik » Wed Mar 28, 2012 1:34 pm

I might need to move my qualifying criteria to 75% as there aren't many shares in the 80% club.

If I don't get a further dip soon, I will need to half the total price of each purchase.

This will mean 44 purchases in total rather than the previous 22 purchases.

This will allow me to make 1 purchase at 75% followed by a further purchase at 80% if the price drops further and one more purchase at 90%.

So any one share will get between 1 and 3 buys out of the total 44 buys.

I will go straight in for a double buy on any share already in the 80%. And straight in for a triple buy on any shares already in the 90% club.

I've scraped together enough money to make the first 16 (out of 44) buys and I should have the rest of the money by the end of May / early June.


Roll on next Friday!
"we needed a fightback and a fightback is under way"
User avatar
Ziknik
Half Krug Member
Half Krug Member
Progress to next rank:
36.5%
 
Posts: 1294
Joined: Sun Dec 06, 2009 5:28 pm

Re: The 80% Club

Postby Ziknik » Sat Mar 31, 2012 12:23 pm

Some of the shares are available on IG Index.

I've started placing orders at >75%

EDIT: I should have thought of IG Index sooner instead of sitting around waiting for the 2012 ISA allowance.
"we needed a fightback and a fightback is under way"
User avatar
Ziknik
Half Krug Member
Half Krug Member
Progress to next rank:
36.5%
 
Posts: 1294
Joined: Sun Dec 06, 2009 5:28 pm

Re: The 80% Club

Postby Ziknik » Mon Apr 02, 2012 7:57 pm

I've made my first two purchases

Solomon Gold
and
Solomon Gold

Great Basin Gold Ltd is annoyingly close to my order on IG Index.

Non of my other targets are available on IG and most markets will be closed for Easter by the time I get my ISA sorted.

I hate waiting :yawn:
"we needed a fightback and a fightback is under way"
User avatar
Ziknik
Half Krug Member
Half Krug Member
Progress to next rank:
36.5%
 
Posts: 1294
Joined: Sun Dec 06, 2009 5:28 pm

Re: The 80% Club

Postby Pixel8r » Mon Apr 02, 2012 10:41 pm

Ziknik wrote:Non of my other targets are available on IG and most markets will be closed for Easter by the time I get my ISA sorted.

Who have you gone with for your ISA? TDW seems good for Canadian juniors to me, like the ability to put on limit buy and sells.
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: The 80% Club

Postby Ziknik » Tue Apr 03, 2012 9:18 am

Pixel8r wrote:
Ziknik wrote:Non of my other targets are available on IG and most markets will be closed for Easter by the time I get my ISA sorted.

Who have you gone with for your ISA? TDW seems good for Canadian juniors to me, like the ability to put on limit buy and sells.

I am also using TD. I opened the account after reading your feedback.

They have a big range of Canadian shares and allow 3 month limit orders. They seem to have all Australian shares too but limit orders only last 24 hours.

On the downside, they are very slow with corporate actions and dividends. I have not been allowed to vote in all corporate actions to date and sometimes they notify me of the action after the event.

Overall, I'm happy with the account as the slowness has not affected me.

I will be using the same accounts for next years ISA.
"we needed a fightback and a fightback is under way"
User avatar
Ziknik
Half Krug Member
Half Krug Member
Progress to next rank:
36.5%
 
Posts: 1294
Joined: Sun Dec 06, 2009 5:28 pm

Re: The 80% Club

Postby Ziknik » Tue Apr 03, 2012 2:52 pm

I've bought Great Basin Gold.

I'm finding it hard to wait for my entry points and I'm wondering if I should BUY BUY BUY BEFORE I'M PRICED OUT.

Need a way to tame the perma-bull within.
"we needed a fightback and a fightback is under way"
User avatar
Ziknik
Half Krug Member
Half Krug Member
Progress to next rank:
36.5%
 
Posts: 1294
Joined: Sun Dec 06, 2009 5:28 pm

Re: The 80% Club

Postby Ziknik » Tue Apr 03, 2012 8:55 pm

I have decided to move my purchase point lower for my spread betting account. I will buy at 66, 75, 80 & 90%. I will also have a range of selling points in this account... The selling points are to be decided later.

I think I am going with 75, 80 & 90% for my ISA- I dont have enough money to buy all the shares at 66% at the moment.
"we needed a fightback and a fightback is under way"
User avatar
Ziknik
Half Krug Member
Half Krug Member
Progress to next rank:
36.5%
 
Posts: 1294
Joined: Sun Dec 06, 2009 5:28 pm

Re: The 80% Club

Postby Pixel8r » Tue Apr 03, 2012 11:00 pm

Ziknik wrote:I have decided to move my purchase point lower for my spread betting account. I will buy at 66, 75, 80 & 90%. I will also have a range of selling points in this account... The selling points are to be decided later.

I think I am going with 75, 80 & 90% for my ISA- I dont have enough money to buy all the shares at 66% at the moment.

Wouldn't 61.8% be a better first level?
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
User avatar
Pixel8r
Founder
Founder
Rhodium Rocket
Rhodium Rocket
 
Posts: 17089
Joined: Fri Dec 04, 2009 4:16 pm
Location: South West UK

Re: The 80% Club

Postby Ziknik » Wed Apr 04, 2012 9:14 am

Pixel8r wrote:Wouldn't 61.8% be a better first level?

Yes, I suppose it would.

66% is a bit arbitrary (based on '3 bag')... But the truth is, my entire methodology is arbitrary:

- I'm using the Yahoo Finance roller ball for my 2011 high prices. And I've worked with speed rather than accuracy
- I'm spread betting futures (which have financing built in to the price)
- I bet there are half a dozen typos on my spreadsheet
- and my rounding up/down is all over the place when I set my limit orders.

This is trading in its worst form, but I know a bigger sucker is going to turn up and buy my shares in the future. I only have to wait and hope the 'belly up' ratio is small.

The shares in my isa and trading account can be held forever at no further cost to me. I will need to think about my spread betting again in december when I come to roll over
"we needed a fightback and a fightback is under way"
User avatar
Ziknik
Half Krug Member
Half Krug Member
Progress to next rank:
36.5%
 
Posts: 1294
Joined: Sun Dec 06, 2009 5:28 pm

Re: The 80% Club

Postby Ziknik » Wed Apr 04, 2012 9:18 am

I've bought pine tree and a few others. I will paste a table of purchases when I get to a computer.
"we needed a fightback and a fightback is under way"
User avatar
Ziknik
Half Krug Member
Half Krug Member
Progress to next rank:
36.5%
 
Posts: 1294
Joined: Sun Dec 06, 2009 5:28 pm

Next

Return to Mining Equity Investment

Who is online

Users browsing this forum: No registered users and 6 guests