I also own SSRI, PAAS, AG, HL, EXK, MUX, TAHO, PSLV, and SIlvercrest. But SLW is my fave.
Hi yo, Silver! So glad Rick is excited about silver.

I forgot AXU.

Hi Bonzo Barzini. It wasn’t the complete Silver mining list. Just the one’s I owned, have owned, or want to own. In general I steer clear of the larger companies in the gold or silver space, so most of the Majors and larger Mid-tiers aren’t in my wheelhouse. Many of the companies you named are the most solid ones in the sector, but they also greatly under-performed the Jr companies (except for Coeur and First Majestic) in 2016, and I’d expect the Jrs to continue to outperform to the upside and downside depending on how the markets go.

I like Silver Wheaton and respect Randy Smallwood, but for streamers I like the extra torque of Sandstorm Gold and Marlin gold, or the some of the Prospect Generator/royalty companies I posted on yesterday’s market wrap.

I have owned Coeur, First Majestic, Hecla and Fortuna in the past though, and kept Hecla and Fortuna on the list because they are well run companies.

I’d probably consider Endeavour Silver again as a solid Silver Mid-tier producer, but again, prefer the Jrs. for the percentage moves as a trader. If I was buy and hold only, then I’d just buy the ETF’s SIL and SILJ for exposure to the big boys…..

Bonzo Barzini – What are your thoughts on the where Silvercrest sits today in terms of share price?

There is no doubt that they have a solid team in place, but do you feel their exploration results are enough to back up their current valuation?

Hi Excelsior, as for royalty companies I also own Sandstorm, RGLD, FNV, and OR. SLW seems to be the most undervalued, even if they lose their tax case. I’m sorry to say I haven’t followed Silvercrest since I got my shares in the spinoff after the AG takeover, and don’t own enough to make it worth my time to study. I just hope in a few years it will be worth a lot more. I have owned PAAS for about 25 years, so I am very patient.

Thanks for the response back Bonzo Barzini. I just thought I’d ask, I haven’t kept up with Silvercrest either, and had shares from the AG spinout that I sold like a dummy and missed a big part of the run up last year. There was just and “Angry Geologist” piece out about their valuation, but that guy is almost always negative on every company, so I didn’t know how much weight to give it. He just felt it was overvalued on hype and sentiment. Just thought I’d ask.

Yes the SLW tax issue has been a rain cloud over their heads for a while, but hopefully it all gets sorted out soon. They are undervalued compared to their peers.

The larger streamers like RGLD, FNV, and SLW are slow and steady climbers and perfect for longer term holding, just a bit boring to trade. That is the same with the larger Precious metals Majors, but there are about a dozen ETFs and Funds with exposure to a basket of Majors, Mid-tiers, and even Streamers so that’s the route I’d go if it was just for buy and hold purposes personally. (unless you are in some of them for dividends, where it is better to own them directly in those cases).

Nice updated on Almaden. I have them in with the Gold companies but they do have significant amounts of Silver as well. There are a number of Gold companies like McEwen or Klondex or Mandalay Resources that have significant Silver exposure but I usually look at what the dominant mineral will be or if they report in Gold equivalent ounces or in Silver equivalent ounces.

Cheers!

BTW – Thanks for your thoughts and posts on Uranium yesterday Steele. Good stuff!

The thread really got going….. 🙂

Yes it may not scream sell, but it doesn’t scream swell either 😮

Blue – I’m a long term Uranium bull as you know, so I’m didn’t abandon ship last week. To be clear I didn’t cash out of any holdings completely last week (except on URRE as noted, and ALX the week before).

All I did was trim back the winnings from Wed-Friday in my core Uranium positions, for much higher than they are trading for this afternoon. We discussed last week and over the weekend that things were overbought and frothy, and that is the time to pull partial profits. That’s not the same as cashing in, and it is preservation of capital.

For some reason, when I say I am “Trimming” people equate that to selling out completely. Maybe most investors just buy and sell in one lump sum, which is not a good strategy at all in Jr miners. It is much “safer” to average in to a position in tiers or tranches, then sell out of position in tranches (at least 2 but maybe 3-4 depending on position size). The exception being a need or want to liquidate a position all at once due to a technical or fundamental data point.

Trimming back a position and selling out of a position are 2 totally different activities.

Trimming is reducing your overall position size by 1/4, 1/3, or 1/2 in my lingo. It may be in one tranche or two, but it is not selling the whole position. The trading strategy is then when things pullback in those same stocks by 15-50%+ then I add that same number of shares back with change left over. This lowers your cost basis and gives you profits to dump into another stock or allows you to buy back a larger position in the same stock reducing the cost basis even more dramatically.

I mentioned I was trimming Gold & Silver stocks in July and August of last year and people continued to warn me it was a “long bull market ahead of us.” Yeah, I get that, but there are regular and healthy corrections, and by pulling out last summer of 1/3- 1/2 of my position, I had a blast buying those same shares back in Nov-Dec for much lower prices at their 38.2%, 50%, and 61.8% Fib retracements of that move.

For a mini-example…. I was able to buy back some of the Denison I sold lat week at a 14% discount this afternoon. It was tempting to to buy back the portion I trimmed in Nexgen and Energy fuels this afternoon, but I want a little more sell off first.

That isn’t the same as cashing in, and believe me, I’m in the Uranium sector for the long haul. What is happening now, after the irrational exuberance of the last few weeks is it is dawning on some investors that Uranium at $22-$23 isn’t making ANY company any money at this point, the Trump tweet effect is fading, and the big news about the Kazakhstan reduction in output isn’t imminent where one has to hold through a correction this week.

Having said that, the large price spikes the last month or so, and the huge amounts of volume mean institutional money is flowing into the space for the first time in years. Pullbacks will be shallow and should be bought moving forward.

After such a rough day, we may even get a pop tomorrow in Uranium miners, but we’ve had correcting prices since the end of last week, and today was a sector-wide smack-down:

Uranium Stock SYMBOL % CHG
Cameco Corporation $CCJ -18.24%
Anfield Resources Inc. $ARY -16.00%
Uravan Minerals Inc. $UVN -15.79%
Bayswater Uranium Corporation $BYU -13.33%
Forum Uranium Corp. $FDC -12.50%
Deep Yellow Limited $DYL.AX -12.00%
Denison Mines Corp. $DNN -11.44%
U3O8 Corp. $UWE -11.11%
Purepoint Uranium Group Inc. $PTU -11.11%
Forsys Metals Corp. $FSY -11.11%
IsoEnergy Ltd. $ISO -10.74%
UEX Corporation $UEX -10.71%
Azarga Uranium Corp. $AZZ -10.64%
Plateau Uranium Inc. $PLU -10.00%
GoviEx Uranium Inc. $GXU -10.00%
Uranium Resources, Inc. $URRE -9.87%
Azincourt Uranium Inc. $AAZ -9.09%
Laramide Resources Ltd. $LAM -8.89%
Bannerman Resources Limited $BMN.AX -8.51%
Mega Uranium Ltd. $MGA -8.33%
Pacific Bay Minerals Ltd. $PBM -8.33%
UR-Energy Inc. $URG -8.17%
Energy Fuels Inc. $UUUU -7.83%
Global X Uranium ETF $URA -7.58%
Fission Uranium Corp. $FCU -7.50%
Blue Sky Uranium Corp. BSK -7.25%
Berkeley Energia Limited $BKY.L -7.04%
Clean Commodities Corp. $CLE-6.67%
Fission 3.0 Corp. FUU.V -6.25%
Skyharbour Resources Ltd. $SYH -5.75%
CanAlaska Uranium Ltd. $CVV -5.45%
Lightbridge Corporation $LTBR -5.45%
Uranium Energy Corp. $UEC -5.10%
Western Uranium Corporation $WUC -4.76%
NexGen Energy Ltd. $NXE -4.69%
ALX Uranium Corp. $AL -4.00%
Uranium Participation Corporation $U -3.56%
Centrus Energy Corp. $LEU -3.36%
Peninsula Energy Limited $PEN.AX -3.14%
Eros Resources Corp. $ERC -2.70%
Energy Resources of Australia Ltd $ERA.AX -1.47%
Mawson Resources Limited $MAW -1.28%
VanEck Vectors Uranium+Nuclear Engy ETF $NLR -0.25%

Like I said in an earlier post,I’m doing my best trading by staying disciplined in partial selling on rallies and buying back in sometimes when things have pulled back…Trimming is no different.Also allows you to spread the wealth

I liked that approach you posted Wolfster. Very prudent to protect gains and reduce losses as much as it is to keep gaining. There is always the danger of missing sudden move, but people also overemphasize that point as well with a few out-sized examples. The real problem stems from investors unable to buy back in during a draw down, or buy back in minimally higher if a stock does start an unexpected rally.

It is sad to leave money on the table, but nobody ever got hurt taking a nice profit. It is far more painful to watch gains evaporate, by taking a round-trip in a stock, or worse to lose money on a trade. The trimming should be kept to a minimum in Bull markets, and the pullbacks are shallow and should be bought back back on a smaller percentage move than what one experiences in a bear market.

Blue – Thanks for posting that interview with Jordan. At the 9 minute and 30 second mark he does a very good job addressing the rally over the last few weeks, and the recent pullback, but I agree that 15% pullbacks in companies is a good place to add or acquire positions.

Many of the miners pulled back by almost 15% just today and already have come back down that much from their recent highs. That is why I bought back some Denison today at a 14% pullback from where I sold it.

Bob UK – to answer your question from Friday – I had mentioned a 15-20% correction in a stock is a good place to jump in. The more I think it over, if we even get mild pullbacks in these Uranium stocks tomorrow, then I’ll be buying as many of them would be right in that zone (and some are already there).

#BTFDs

I added a little $UEC in after-hours trading since it is lower than the close.

Ex, I know you just trimmed your positions in Uranium and you have a core position, I just related to the Jordan interview that it good to have a core position and to be brave and hold for the long run. Of course its good to trim it gives you a short term reward and gives you a good chans to reposition in other equitys or buy back the same share cheaper. But the core position is your safety in a new bull market.
🤗🤗🤗

You have a great outlook on things Blue. Yes, trimming partial profits into the froth protects gains, while keeping the core position gives an investor continued access to the upside. In a bull market the trimming should be done less frequently and only when really overdone, and pullbacks of 10-20% need to be bought before the next leg up.

Thanks for posting Jordan’s interview, as it reminded me that this new Uranium run could really surprise people to the upside, and I concur. I’m adding back in some of the Uranium positions that I trimmed last week that have pulled back 15-20% now.

It’s going to be a wild ride!! 🙂

Here’s some good info about where we stand right now in the Uranium market.

https://goldtadise.com/?p=392511

Thanks for the charts.

😄👍

Blue – Good chart from GoldTent. I do think it is important to chart each stock individually, but that provided a good view of Uranium Participation corp.

The pullback in some stocks may have already run it’s course (as mentioned above pullbacks will be shallow and should be bought), but if we get and addition 3-8% move down again tomorrow in a number of stocks, then I’ll get more serious about adding back to positions I trimmed at higher levels.

Happy trading guys!

I have been cashing out so I have some spending money on some nice drops.