When Erik mentioned that just somebody sneezing could move some of the micro-cappers, it made me chuckle.

I bought Headwater about one year ago, all of their 4 projects are in The US. They were selling for about 22 cents then. I read that news release where Newcrest bought in. It might be time to give them another look. DT

Thanks……….. appreciate it…….

Thanks Eric. My Wife tried the Google route and no success either. I figured Uru was iron as not sure if Odin had access to Titanium or stuff like that. Thanks for the response and I am still thinking about Dwarves making weapons for the Gods. I do like i-80 though.

Hi Lakedweller2 – Those were some good thoughts and reflections on the dangers of falling in too heavy with the sentiment on chat forums, not just on ceo.ca, or stockhouse, or twitter, or youtube, but even here on the KER. Often times, when everyone is jacked up about a hot and trending stock it is far too late and the people climbing onto the trend are going to be intermediate (or sometimes) longer term bagholders, and conversely, when people are piling on with negative comments and hate (unless truly warranted… and sometimes there is bad news or bad management in mining companies), most of the time the whiners are the losers, and good contrarian indicators to be accumulating.

With Great Bear, I was in twice for swing trades, and dodged a few of the many pullbacks, then it raced away from me and got too “pricey” at the time, and then it corrected hard after putting out consistently good drill results, and I noticed the daggers came out and investors were blaming Chris or the company, when they were, in fact, executing quite well. That was the contrarian signal I’d been waiting for to get back in, and started accumulating for the longer term hold.

Each time after that we’d see a pullback in Great Bear, then I’d add a little be more to the position, actually averaging up in the stock, but on the corrective moves. We had Chris on the show over and over again, and would sometimes laugh before calls that the markets were just too fatigued from all the great drill results they kept putting out, and thus had to sell the good news. There was a pattern of success though, and so I realized I needed to keep accumulating the quality, despite all the bellyaching and whining on many chat sites.

People were reacting to the periodic downward movement of the share price and thus blaming managment (typical retail mistake), but remained oblivious to the actual good work the company kept doing, or the larger pattern which was still in an uptrend… which is an accumulation dream.

There are many companies in that same position today, that continually put out good news, but due to the low sentiment sector-wide, the share prices have sold off hard. As a result, there is a lot of whining and gnashing of teeth and finger pointing blame at the companies, management teams, or IR teams… instead of recognizing the fantastic accumulation periods we are seeing. In a year or two people are going to look back at 2022 and realize they should have been deploying cash into the weakness, not selling out near lows to cry in their soup.

This is the way it always has been and always will be though with regards to human emotions, and recency bias. In corrective moves, people extrapolate it out to keep lasting forever, and assume the worst about companies/management (even when the companies are delivering on strategies and milestones as outlined). They throw in the towel at exactly the wrong times, and remain bearish far too long, missing the turns and the powerful short-covering rallies. Then during good times, people assume the companies and management teams walk on water and can do no wrong (even if there are red flags and areas of concern), because in the joyous sentiment with prices going up, they refuse to sell when it is way overbought and way too frothy in valuation. Instead they get into group-think with calls for moonshots and rocketship emojis. That is the time to sell them your stocks and politely bow out of the irrational exuberance.

People then love to parrot to one another the old adage to “buy low and sell high,” all the time…. but most traders suck at this. The truth is that most people’s emotions prevent them from executing on this simple trading philosophy, because it is hard to buy a stock or sector that is disliked and washed out. It is also hard for people to sell a stock that has been ripping higher and higher. As we’ve stated on here for years, the reality is that most investors like to cry low and buy high instead.

When we are at short term bottoms (like last year’s tax loss selling in late December, or more recently in early July) there are very few investors willing to buy, and it always feels lonely. I told half dozen people both times that I was deploying cash to accumulate the deals, and was met with a range of disinterest all the way to warning me about being careful. They never acknowledged after things played out that those were the ideal times to have accumulated before the ensuing rallies to follow. They never reached back out and said good job on “buying low,” and never admitted that they had missed the boat once again.

Then when the rallies really get ripping, and after double-digit or often triple digit gains in a stock or sector…. suddenly then they feel comfortable on an emotional level buying the flavor of the day, typically marking the top of that move when all the indicators are far too overbought, so they become the next round of bagholders… then they blame the company, the sector, or the person that recommended the stock instead of their own terrible trading discipline. This is not just in the PMs, but we saw this same pattern in the Tech stocks, in the Cryptos, in NFTs, in Clean Energy stocks, in Oil stocks, in Meme Stocks, in Stay-At-Home stocks, in Reopening Stocks… People don’t change, and neither does the madness of crowds. Rinse and repeat.