Erik Wetterling – Waiting To Pull Profits On Recent Winners If The Journey Is Just Getting Started

Shad Marquitz
December 29, 2022

Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins us to outline why it is best to be patient with companies that have demonstrated something special, because they may still have much further to grow if they have unrealized and growing value, before one would want to harvest gains.   We’ve discussed in the past that often the discovery hole, or key company milestone is just the beginning of the journey, even if the share price has put in a nice pop higher. 


In this interview we discuss Magna Mining (TSX.V: NICU), as an example of nickel and base metals company that Erik feels is just getting started in relation to the market recognition of the value they already have put in place. Erik makes the point when one gets positioned early into an unfolding value creation story, that one can even press their bets by averaging up in a story that continues to grow in share-price and market cap; so this is the approach he has decided to take personally in Magna Mining up until present. *  


We point out that investors should really do their due diligence on the front-end as to where they believe the value in any company they invest in can realistically grow over a certain period of time. Then once an investors has a thesis for the potential value of the company over a specific time horizon for the investment, then they can ask themselves if their actions are in alignment with that thesis when deciding when to exit the stock. Most big wins in the sector take years for the stories to unfold, which can be a challenge for investors that only want to hold for weeks or months before assessing if it was the right investment.


*In full disclosure, Magna Mining,  mentioned by Erik in this interview, is a personal position he holds in his portfolio, and is also a site sponsor of The Hedgeless Horseman website.   



Click here to visit Erik’s site – The Hedgeless Horseman

    Dec 29, 2022 29:30 PM @GoldDiscovery1 – 11:35 AM · Dec 28, 2022 – Twitter:

    “2022 mining stock ranking (up to 12/27/2022): Patriot (lithium discovery), Tearlach (lithium real estate), Snowline (gold discovery), Euro Elec (shell), Morien (coal royalty in prod.), CVW (mining tech), Ubique (shell buying asset), Reunion (gold discovery), WAM (CRD discovery)…”

      Dec 29, 2022 29:31 PM

      Magna Mining, mentioned in today’s interview with Erik, was also on this first page of 5 for 2022 mining stock performance rankings.

    Dec 29, 2022 29:33 PM

    Here’s another good table showing the best Gold drill intercepts in 2022 based on research by Mining Deck:

      Dec 29, 2022 29:35 PM

      I’ve got positions in 4 of the companies on that list directly: Lion One, Karora Resources, I-80 Gold, and Jaguar Mining, and 1 of the companies (New Pacific Metals) indirectly though the large strategic stakeholding of 1/4 of the company by Silvercorp.

      Also, I’ve been in and out of Highgold Mining a few times, but was out of position when they put out that bonanza grade hole. I had a good chat with them in New Orleans before they released that and was strongly considering getting back in (and likely still will) right before they put out that zinger… so that remorse stung a bit, but I’m thrilled for their team and for shareholders that caught that pop right afterwards. They’ve pulled back down again, so it’s looking pretty good to me again to maybe start scaling in here… (not investment advise, just something I’m considering).

        Dec 29, 2022 29:13 PM

        Hi Ex, I’m not sure how to play HighGold Mining, because they are in Alaska. There won’t be any activity until the spring. Investors start to grumble when remote mining companies are forced to hibernate. We’ll see, there are always surprises but I think springtime could be the time to get back in. DT

          Dec 29, 2022 29:33 PM

          Good points DT. Yeah, I may just get a starter position going in Highgold soon that I can build upon later, as it has retraced most of the move now of the big pop on that best-in-class drill hole 2 months back.

    Dec 29, 2022 29:39 PM

    Chairman – @WSBChairman – 11:46 AM · Dec 28, 2022 – Twitter:

    “South Park made a video making fun of the former CEO of FTX, Sam Bankman, and it’s hilarious 😂”

    Dec 29, 2022 29:41 PM

    FREAKY FRIDAY………………. AGAIN>…………………….. Last one of the Year………….. 🙂

      Dec 29, 2022 29:42 PM


        Dec 29, 2022 29:45 PM

        Ex: I posted a long diatribe that I probably put the wrong addresses on again. Help! Look in the Lost and Found and see if it is there. Thanks.

          Dec 29, 2022 29:59 PM

          If you can’t find it, I understand.

            Dec 29, 2022 29:59 PM

            It was up at one point. I read it.

            Dec 29, 2022 29:22 PM

            They usually go up when there is an address issue and then go off. What did you think? Is long term hold possible or is at least keeping profits moving more realistic. I wish I could walk away and make stocks fundamentally work like the first 40 years of my investing life … until computers. But I don’t think it is realistic anymore. I am not disagreeing with Erik as we invest pretty similar. I just feel like holding is a risk when fundamentals are not a controlling factor in a Sector.

            Dec 30, 2022 30:43 AM

            Lakedweller2 – post was found in spam folder and released. Thanks for sharing your insights here on the KE Report. Cheers!

            Dec 30, 2022 30:10 AM

            Fundamentals will always win out in the long term….your example of Emerita is one where you had an 8 bagger on what I would say was MOMO mostly. The fundamentals are only now starting to come in place. It’s a case of getting a second 8-10 bagger on the same play.

            Dec 30, 2022 30:08 AM

            Thanks for the input. Yes, Emerita has another run up ahead of it to achieve price to value levels. I am thinking in the EV area that outsized gains are possible once the inflation issue is somewhat resolved and the recession knee-jerk comes to an end. In the meantime, the instability of currencies/money will need resolution in favor of something with intrinsic value and that should be commodities of some form and not some unbacked computer scheme no matter what it is called. We will see as next week the computers will figure out it is 2023 and they may have revised algos that somehow are in tune with real world activity. Fat chance but possible….

    Dec 29, 2022 29:26 PM

    DT Close Your Eyes. I am about to talk intervention again.
    I am all in agreement with Erik option on holding for the multi-baggers and it works. … until intervention. Remember Great Bear didn’t go straight up and it was often the case that the price didn’t always go up on good news, which was pretty much every release. In addition, the site became highly trolled which indicated intervention and price disruption. The surge in price came with a buyout offer that some felt premature, but in retrospect was a decent offer but still an intervention of sorts.
    In the case of Emerita, they acquired a brownfield property with a large known resource (needing confirmation) as well as additional properties acquired, or acquired through Court action or pending properties through court action. Doc Jones did some excellent data work and came up with some low ball projections in the LT price range of $15-20 range possibly just based on what was known.
    Things were off to the races and it took close to a year to go from .28 for me to over $3. I had loaded up … thinking long term … on a roll … until it stopped and for the next 11 months it was walked back … constantly and consistently. There was no change in projections: drill results were good, new properties acquired, a Final court date for the criminals that fraudulently bid on AZN giving a close to 100% chance it was going to Emo as the only qualified bidder….
    But, the intervention began: the trolls became incessant on, the false information was spread, a sort squeeze of 47% in one day was reversed in 2 days, and the price dropped and dropped until just recently it was .40 US a near 100% retracement.
    I could have rode it all the way back down, but I elected to strip and paint my antique home in Texas, replace the roof and put in a new a/c and heating system; as well as cut the shares in half and redeploy them to tanking miners of various sorts.
    I then changed the game. Since my account self balanced everyday, I looked for those experiencing gains despite intervention. Although few, I began taking profits in those at least showing (first in /first out) profits of at least 50%, and every couple of days taking them with the plan of rolling other profits from others reaching that criteria back in to the original stock in order to maintain share count in those making profits. Those stagnant were considered for exchange.
    As a result, among my current positions I am holding between 50-120k shs of Emo, Magna, Brixton, Surge Battery, Fission 3.0, Nine Mile, Timberline, Tectonic, Golden Lake and lesser positions in Fireweed, Southern Silver, Silver Tiger, Empress Royalty, Lion One, Eloro, Snowline, Defiance Silver, Headwater, I-80, Osisko Mining, and a few misc.
    My point being, had I held my outstanding Emerita shares at over $3, I would not have the selection of stocks at the current prices, nor the amount of shares of each if I rode Emo back to .40 without taking some profits and/or losses since January.
    Yes … I am still range bound but NOW I am ready to hold and ride for the next few months as I know intervention can and does occur daily no matter how much believe “this time is different”. The question to ask yourself is “Is anyone one in jail of importance”. If the answer is still “no”, then don’t count on long term investments in the mining area. Always be ready to take profits whether you want to or not. Computers are real as is intervention. But, you don’t have to just own ETFs. You can make your own decisions… just don’t trust anything about the future you can’t control. We invest in markets we can’t control.
    (Long Message Follows)

      Dec 30, 2022 30:04 AM

      Hi Lake, I’m glad your back, by the way great rant. When you mentioned fixing up your antique home in Texas it reminded me of a very famous American Business Magnate, Ross Perot. When Ross had made it big, he went back to Amarillo Texas and purchased the brick home he grew up in. The previous owner had painted the bricks, so he hired a contractor to turn all the bricks on his family home inside out so he could relive some happy memories. I thought I would leave you with some of his famous quotes. DT

      “Most people give up just when they are about to achieve success. They quit on the one-yard line. They give up at the last minute of the game one foot from a winning touchdown.”

      “War has rules, mud wrestling has rules-politics have no rules.”

      “Eagles don’t flock you have to find them one at a time.”

      Take care, Buddy! DT

        Dec 30, 2022 30:57 AM

        “War has rules, mud wrestling has rules-politics have no rules.”
        Cool quote, but really, politicians break rules.

          Dec 30, 2022 30:42 PM

          Hi BDC, Perot knew what you are saying that is why he made that quote, remember he ran his own bid for Presidency as a third- party candidate. DT

    Dec 29, 2022 29:27 PM

    “Big, Big, Big, Things Happening in Gold and Silver. Yearly Wrap Up-12.21.22, Craig Hemke interviews Eric Sprott. Eric is so into Silver, and he really likes my favorite team The Buffalo Bills. Eric also likes Michael Oliver’s Analysis. This is a must listen. DT👍

      Dec 30, 2022 30:46 AM

      Very nice to get the update from Uncle Eric and Craig.

        Dec 30, 2022 30:59 AM

        Uncle Eric and Craig seem to have similar interests and thoughts to KE participants. Interesting presentation for a move into 2023.

    Dec 30, 2022 30:39 AM

    Kind of reminds me of the talk 2-3-4-5+ years ago from Quentin+ Moriarty + others with NOVO

    Dec 30, 2022 30:07 AM

    Back in Boil..We will see how /NG does…It looks like a full AB=CD down put in today…glta

    Dec 30, 2022 30:03 AM

    Would love to see Brixton get into the .30’s but looks like a bit of a wall at .30 to churn through. That late day buying we’ve seen recently could do the trick. 🤞🤞🤞

    Dec 30, 2022 30:31 AM

    I think Ex, should start a “Darkhorse” competition. They’re at the Post! I have got quite a few, one of them has to at least show place if not win. DT LOL! 🤞

    Dec 30, 2022 30:33 PM

    30 minute./NG nat gas..this next ABC down on 30 minute will be optimal price action for re-entry…That D point price 4.30 to 4.243 is a closer fit to the structures on the day and week charts…could the low for 2023 happen next week…well maybe

    Dec 30, 2022 30:12 PM

    NG might be due for a bounce but it’s heading much lower. Of course the bounce could be a big one.

      Dec 30, 2022 30:24 PM

      /NG is a fave for trading……I do not know if/when the war/ russia thing high will be broken….GDX type stocks will probably retrace the Nov. 8th breakout volume bar which is about a fibonacci normal .618 for the next leg up…I will take on that if/when it occurs…just seems likely…if nothing but a profit taking occurance…glta

    Dec 30, 2022 30:32 PM

    It would be spectacular for metals/miners to have a great a 2023 but this pervasive bullishness is making me nervous. I have lots of purchasing to do and hoping there would be another attack or woosh down in mining stocks. I have exposure to seniors but not so much to mid tiers like SAND, EXK, MAG, BTG. Having said that, AEM and PAAS are my biggest holdings.

    Wishing a prosperous 2023 to entire family of KER’ites.

      Dec 30, 2022 30:22 PM

      Looks like you have made some good choices.

      Dec 30, 2022 30:54 PM

      CaliJoe- May your trades be prosperous in 2023.

      Out of the ones you mentioned I’ve got a solid position in both Sandstorm and Endeavour Silver.

    Dec 30, 2022 30:02 PM

    Surge Battery was halted about 30 mins before close. It was up over 20% at the time on no news. The reason given in the Halt message was pending news. Drill results were expected on a couple of holes. Don’t know if news good or bad, but share holders are hoping for something positive as usual. If you are interested, put Surge Battery news on your calendar for the New Year.