Now that the majority of our initial Odds Engine downside targets have been reached (see here and here and here and here), the real carnage can begin:
And from our post of 12 December 2019 — Cycle Death and the Uranium Junior — were you curious about our estimated time-frame for a bottom:
P.S. It’s important to remember that the 900% return you expected on the stock you bought at $0.50/sh. and which has declined by 90% to $0.05/sh., now is represented by a rise to a mere $0.50/sh. There are still good trades to be had down the pike, but this requires that position size scales proportionately as shares cheapen.
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Greetings Tom ! Just wanted to see what your thoughts are on the Coronavirus affecting stocks in general. Looks like they’re downplaying the severity of the situation, I’m wondering if I should sell my stocks.
Hi, Miguel,
I can’t tell you what you should do, but I can tell you what we have done. We have been long gold from ~$1,200, silver from ~$14.00 and platinum from under $800. We went short the DOW on 18 December 2019. We plan to roll over our contracts prior to March and again prior to September. Our exposure to uranium will remain unchanged unless our extreme bear scenarios play out, in which case we will add. If the dollar weakens appreciably, uranium’s bloodbath will be somewhat staunched.
I hope this was helpful.
Sincerely,
Tom
Thanks for the advice Tom ! On Monday I’ll be adding to my gold and silver positions and scaling out of most of the others.
Hey Tom,
I dont remember you covering Global Atomic (GLO) and you dont have it in your portfolio either.
To me it seems like a wonderful company with lots of U in the ground and relatively high grade (considering its in Africa).
They likely do have to raise cash despite having nice cash flow from their zinc operations, but other than that I see more potential in GLO than in GXU.
I’m more weighed on GXU than GLO, but I’d like to hear if there is a specific reason that has yet prevented you from positioning in GLO.
I covered it in November of last year: https://www.fahy.co/glatf-global-atomic-independent-economic-assessment/
I must have missed that. Thanks!