I don’t like telling people what to do. I have had several requests to recommend stocks. I don’t do that. If you are a short seller, we should talk. Because when I recommend a stock, it goes down. Losing people money is not my goal.
A friend of mine suggested that I maybe talk about what I was doing, and why I was dong it. That way I am not recommending anything just telling what I am doing. So that is what I am going to do.
I still use the Micro Investor strategies for looking at stocks. I want stuff that will go up potentially 20% to 40% in the next 8-12 months. These are the types of investments I hold in my TFSA account. The TFSA money is for Real Estate investing and business investing.
I like new technology type companies. I really don’t care what sector they are in, it matters to me more, what the market potential for their product is. So here is what I did this week.
I sold 500 shares of GTE, Gran Tierra Energy Inc. GTE is listed on the TSX. I had bought them in January of this year at $3.50. I bought them because the TD analysists said the stock would go up by 20%. I sold the at $2.62 a share. Quite a loss. They closed at $2.70 the next day. That is my luck. I sold them because they did not look like they were going to reach the $3.50 range anytime soon. I had given them almost a year to get there.
Besides I needed cash to buy something I think will perform better.
In that category, are 2 of the stocks I bought, or tried to buy. They are Barkerville Gold Mines BGM, and Pyrogenesis Canada PYR, both listed on the Venture exchange. I wanted to get 2000 of each. I already own 2000 Pyrogenesis shares which I bought back in April 2016. I bought them at $0.21. The new ones I wanted to buy were at $0.70. That is a 300% increase. I did not get them, because I had only bid $0.69. I think that these shares, over the next couple of years will reach the $2 to $4 range. That is why I want to buy more.
I did manage to get 500 of the 2000 shares of BGM. Which is kind of frustrating, because I will have to try and buy 1500 more, and this will cost me another commission. Also, they closed at $0.75, so they may cost me more. BGM is deep in “Over Sold” territory, but like their drill results. If they get back to their 52 week high of $1.39, that would be close to 100% return. That is definitely within my 20% expectation.
I also bought 2000 LiCo Energy Metals Inc, LIC is also a Venture exchange stock. I already own 1000 shares, and this purchase dollar cost averaged my cost per share down to $0.10 from $0.14. If they get back to their 52 week high ($0.24) that would also be a 100% return. This one will be a longer term hold than the other 2.
Why do I like BGM, PYR, and LIC? As I said before, with BGM, they are very low right now. In “Over Sold” territory. That means that the stock price is very low compared to it’s recent levels. (Remember you BUY LOW and SELL HIGH) They also announced that they had intersected 20 grams per ton (g/t) of gold in a drilling sample. A geologist friend of mine, said that it takes about 5 g/t to make a viable mine these days. So, 20 g/t is a decent find. They have also attracted the attention of a large Gold Company that has invested in them.
PYR is a fantastic Canadian company. They produce the finest metal powders available. They also do it with a patented process. With 3D printing becoming more and more mainstream in industry, the need for powders is huge. There are also some market forces, that might allow this company to become a major player. They also have the technology for destroying chemical waste. A huge potential market.
LIC is an exploration company that is involved with Cobalt, and Graphite. These two minerals, along with Lithium are the key components of rechargeable batteries for electronics and electric cars. Market research says that the demand for batteries will be higher than the supply for a several years to come. So, I like Lithium, Cobalt, and Graphite miners and refiners.
That’s what I did this week. I lost money on one share but hopefully can use the money that is left, to buy shares that will be winners. Good Luck comes from good research. (most of the time).