Erik Wetterling – Reviewing The Recent Trading Volatility Around Hercules Silver
Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins me to review some of the value investing lessons that can be learned from the recent trading volatility around Hercules Silver (BIG.V) (BADEF) over the last few months. This has been an excellent case study in extreme the sentiment shifts in explorers can be from pre-discovery, to post-discovery, to pre-assay risk, to post-assay news. We discuss how early-stage this drilling is, and that nobody really knows how things will evolve as the balance of the drilling from the $25 million raised is deployed into future exploration work.
*In full disclosure, the companies mentioned by Erik in this interview include personal positions in his portfolio, and they may also be site sponsors on The Hedgeless Horseman website at the time of this recording.
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Thanks for the discussion of Big. Still early and will see if they find some copper. Maybe Bayhorse will beat them to the punch. Maybe neither … maybe both.
I think the best way to play any stock is to sell a position when it doubles and get your money back. If I was a johnny come lately I would be very worried about this stock because unless the next drill result is spectacular this stock will get really punished again. Once bitten twice shy, a lot of investors will leave Hercules and move on never to return again. I have seen it time and time again, this is a tough business, and the chance of success is miniscule that is why you need to protect your capital and learn to be a trader. DT
Speculation isn’t dependent on one hole. What have they drilled? 2-3 holes? Some more results pending and a survey? Barrick dropped around $25 mil for a reason beyond most of our knowledge unless it is a lie. That is an expensive manipulation. Bayhorse said they moved a drill into the area on their property to test at depth. Are they also just trying to make a little off a false statement. Maybe so. Maybe no one should ever try to look for metals in the ground anymore. Maybe it should be left to the Geos working the trading desks of the New York Fed. Maybe mining should be the left to politicians and corporations as metal prices can be properly suppressed and wealth kept to the elite where it belongs. No … I think we have to wait for more drilling or surveys before punting the ball to insiders to profit.
I am still in the green with Big and had I sold after the first run up, I would now have a profit but fewer shares. If I bought back shares with my profits after the bounce, I now would have fewer shares than I did plus a tax gain at the same rate as income. Instead I have the same shares I had when I speculated on the 2nd hole and looking for more drill results and surveys.I could have bought 100 shares of Barrick but they are too closely associated with the Carlyle Group and probably Cramer is their broker.
Me buying Barrick would be the same as me sending a birthday present to Jamie Dimon.
Victoria Gold is a good choice but out of my trading range as it eats up too many shares for speculation. However, their 52 week high in US was $8.45 and currently at $4.88. Now nearby is Banyan and has a close association with Victoria which is only about .25 a share and has identified over 6 mil ounces if I remember correctly. I like the Banyan leverage better as well as the CEO who appears pretty competent. Thanks and good trading.
I recently bought some Cosigo Resources and some I-80 Gold Corp, I spent the same amount of money on each stock. I will keep you informed as to which stock outperforms the other and by how much. One is a 4-cent stock the other was $2.30. Already my 4-cent stock is up 12.5 % and my $2.30 stock is down by about 5%. Stay tuned! I did the same thing with Dolly Varden and Bayhorse Silver. We know how that turned out. DT