Look In the mirror- do you see a professional investor staring back at you? I certainly experienced many trading ups and downs.
I would like to start out by referencing my friend/associate and one of the smartest people in the business, Bob Moriarty of 321Gold.com from his insightful investing book “NOBODY KNOWS ANYTHING“. This book has helped a lot of investors make sense of the markets and has gotten great reviews.
As Bob notes “If you don’t take a profit when you can, you are going to take a loss when you have to. It’s the only alternative to taking a profit.”
As Bob also very astutely notes after helping someone to win a jackpot at a casino, “to keep the money, you now have to stop playing”. We are not saying that you have to stop playing in the stock market as this is not the same as playing the slots.
However it may be prudent to take some of your winnings off of the table! As Bob also says, “The behavior of people runs in cycles.”
Another point he makes is that there are no experts but there is a wise way to invest and a wise way to handle and keep your profits once they occur! We will attempt to explain.
They say it is easy to buy shares in a company but much more difficult to sell and most people can attest to this being a true statement. For some reason, the pride of ownership gets in our brain pathways and can short circuit our logic!
This is added to the fact that nowadays there is an endless amount of conflicting advice constantly bombarded upon us from all sides – such as: buy and hold, follow the fundamentals, follow the technicals, use a combination of both, find a guru, don’t follow gurus, play it safe with a bank, you have to take risks to make money, invest like an algorithmic computer program, farmers are best at commodities…it is endless!
So what is a logical way to approach taking a profit?
Well it may be boring but in a bull market for juniors such as we are experiencing again (finally!) – it may be a wonderful idea to get your original investment back and subsequently let your profits ride since nothing goes up forever and in a straight line. This takes the stress out of the situation. (Note: we are NOT investment advisors, nor do we profess to be. You should consult your financial advisor).
A lot of professionals will give you the advice to sell half when it doubles and let the rest ride. Great advice we can all generally agree on. Bob notes in his book “a reasonable plan to profit might be to sell 33% of your shares when you have a double, sell another 33% of the remainder when it doubles again, and further 33 per cent every time it goes up another 100 per cent. That way you get most of your investment back in cash early on but keep benefiting if it goes up.”
With that method of selling you can ride your positions in comfort not feeling left out if it goes ‘to the moon’ and not hating yourself if the company reports negative news or a market crash occurs. Your money is doing it’s job and you have created options for yourself along the way. Priceless.
Everyone has different objectives and a risk tolerance.
We CANNOT and WILL NOT offer opinions on what to buy and sell. We merely present to you companies we feel have potential and you can assess if/how to proceed.
MGX Minerals, Keek and MX Gold are just a few stocks of MANY that have recently been on a roller coaster ride in terms of their share price -trending upwards but dipping along the way. No one can accurately predict the highs and the lows – but the prudent ‘investor’ knows a good company, follows it and rides out the waves. If there are red flags he/she may sell. It is always good to stay on top of your investments and follow your investments intently.
As many have noted including our friend Mr. Moriarty, “Nobody ever went broke taking a profit.”
We are starting a WatchList section – that is what it is – stocks that I am ‘watching’.
To begin with, we are introducing a marketing technology company Deepmarkit Corp. (TSX.V-MKT)Deepmarkit Website
FetchBot, DeepMarkit’s gamification platform, is designed to deliver all kinds of games for fun and for businesses.
FetchBot Promotions help businesses run social games and giveaways that drive brand awareness, customer engagement, and generate sales. The platform enables businesses to quickly and easily create branded games which are fun, shareable and create unique opportunities to introduce new customers to brands.
FetchBot Social is a platform for the delivery of social gaming to online communities and businesses, featuring HTML5 games that run within chat apps, social media platforms or any web browser. In addition to a library of FetchBot Social games, they provide highly customized games to reflect your unique brand, your products or your sponsors.
FetchBot offers a flexible pricing model and wide range of service options so potential customers only pay for what they need.
This company has highly experienced management led by Calgary’s Darold Parken who founded developed and sold online casino gaming technology company Chartwell Technology Inc. to gaming giant Amaya (TSX.AYA) in 2011 for just under $23 million.
The deal was made up of cash and shares at a time when Amaya was under $3.00. Therefore those that held on to Amaya shares did great as price peaked over $38.00!!
Chartwell’s annual revenue between fiscal 2007 and 2010, ranged between $11.97 million/yr and $20.73 million. In 2015 Chartwell was subsequently again resold by Amaya along with Cryptologics for $150 million. http://www.newswire.ca/news-releases/amaya-completes-150-million-sale-of-chartwell-and-cryptologic-to-nyx-520271021.html
DeepMarkit features 2 main products.
1) FetchBot Promotions: This product line allows businesses to run social games and giveaways that drive brand awareness, customer engagement, and generate sales. Custom games are available.
Flexible pricing models cater to a wide range of potential customers.
2) FetchBot Social: This a platform for the delivery of social gaming to online communities and businesses, featuring HTML5 games that run within chat apps, social media platforms or any web browser. You can play a game and challenge your friends and anyone else by quickly posting the game to major social networks such as Twitter or Facebook! In addition to a library of FetchBot Social games, the company can provide highly customized games to reflect unique brands, feature products or sponsors.
DeepMarkit’s management and a team of 14 have spent 2 years and approximately $4 million to develop their platform and all games are constructed in HTML5.
Creating games in HTML5 is important because it enables users to engage and play on any mobile device in the world without having to download a separate app.
With literally millions of small to medium sized businesses competing desperately to gain and keep new customers on a global basis,
DeepMarkit’s management team is utilizing their many years of gaming technology experience to provide these businesses with the tools to compete in the mobile gaming arena. This has blossomed into a $41 billion per year sector of the marketing industry – clearly the demand is real.
My analysis: At this point the company needs to allocate sufficient funds for marketing. With good marketing and more importantly execution, this stock could be a winner. We are currently watching it and have not bought shares. We may do so in the future when we feel the company is continually executing on its game plan.
The positive is that they have created the platform. Now the challenge is revenue and execution which is expected later this year. If users like the interface and games the company has a good chance of success. A lot of questions still remain, especially with pre-revenue companies but DeepMarkit has a good experienced management team that is known for success.
The company is armed with about $1.3 million in the bank, a debt of $2 million (insiders have lent the company money which could be considered ‘friendly’ debt) and a burn rate of about $100,000/month.
We expect to do a full report in the coming weeks.
Disclaimer: DeepMarkit is an advertiser, we have been compensated. We are biased. Do your own due diligence.
BacTech Environmental (CSE: BAC). The company plans to use its bioleaching* technology (arsenic stabilization) to reprocess sulphide tailings that are causing environmental damage. First it has a JV project in Bolivia with Comibol, the state mining company, to reprocess a “jewelry box” of tailings. I use jewelry box as a description as the tails run 8.8 opt Ag, 2.24% Cu and 1% Sn (tin). Most people are not aware that tin trades for over $20,000 per tonne. Oddly enough for a company that touts bioleaching it is anticipated that only gravity and flotation will be used at Telamayu. What is important is the cash flow from the project will be used to fund future endeavours and it should start in 2017.
A second area of interest is in Ecuador, Ponce Enrique in particular. First a little history. Artisanal miners who number in the hundreds of thousands throughout Ecuador, Peru and Colombia have made quite a mess of the environment with the use of mercury as a way of extracting gold and silver from rock the produce. Over the past 10 years a determined effort has been made to convince the miners that flotation should be used in place of mercury to stop the pollution and to increase the likelihood they will live past the age of 35. Flotation produces gold concentrates that run 2-4 opt BUT with 10-15% arsenic making their marketability very limited. Enter BacTech. Building a 40 tpd bioleach plant (US$10M) in Ponce Enrique will pay more to the concentrators, eliminate mercury use and stabilize the arsenic in the concentrates. The government has to love it. More taxes, jobs at home and a reduction in mercury use. If this concept proves feasible the intent is to duplicate these plants all through Central and South America.
The use of naturally-occurring bacteria to liberate (oxidize) precious and base metals from difficult to treat (refractory) ores and concentrate. Arsenic transformed to ferric arsenate, a US EPA approved landfill material.
My analysis: I believe BacTech has ‘some’ potential but again needs to execute. They will need to raise money and I believe continue to raise money. This is an issue a small cap company generally has – lack of funds to continue to market and execute. Even though President Ross Orr seems to be doing an adequate job – he is only one person.
We may continue to monitor the company and added it to our Watchlist section as we believe in the positive aspects this technology will have on the environment. We remain cautious but modestly hopeful on execution – this is what ultimately counts for share appreciation.
We do not hold any shares nor do we plan to in the near future. We may do so at a future time if we notice solid revenue and execution.
Disclaimer: We have been paid a nominal amount from BacTech – we are biased. Do your own due diligence.
We introduced you to RJK Explorations (TSX RJX.A)on January 18th, Article
Today they announced some positive news results (please see below). From what i understand, the company is in the midst of a private placement wherein the bulk of the funds will be allotted for exploration–good ol’ drillin and proving up results!
They are a sponsor. We are being compensated. We are biased. do your own due diligence.
RJK Explorations drills 14 m of 5.37 g/t Au at Maude
2017-02-07 13:13 ET – News Release
Mr. Glenn Kasner reports
RJK INTERSECTS 5.37 GRAMS GOLD OVER 14 METRES AT MAUDE LAKE GOLD PROPERTY
RJK Explorations Ltd. has received assays for the first phase of four holes (578 metres) of a 5,000-metre drill program at its 100-per-cent-owned Maude Lake gold property, located on the Pipestone fault within the Timmins-Matheson gold corridor.
Results of the drilling are shown in the attached table.
Hole From To Core length* Gold
(m) (m) (m) (g/t)
RJK17-01 74.4 77.7 3.30 2.10
119.9 121.8 1.9 11.82
Including 119.9 120.4 0.5 36.84
And 121.25 121.8 0.55 5.95
RJK17-02 98.5 101.0 2.5 9.05
Including 98.5 99.4 0.9 5.88
And 99.4 100.3 0.9 17.42
RJK17-04 89.0 103.0 14.0 5.37
Including 89.0 90.0 1.0 12.49
And 98.0 103.0 5.0 9.86
* Interval along the hole. True width is unknown.
RJK17-03 was drilled to test adjacent stratigraphy and contained no significant values.
The initial drilling program was successful in further defining the 5 zone with its host stratigraphy. Additional drilling within the 5 zone is required to confirm the historical resource base and to upgrade the 5 zone into a National Instrument 43-101 resource estimate.
Last fall, the company implemented a dedicated program of data compilation to all historical work at Maude and brought that work into a modern UTM grid co-ordinate system and a comprehensive digital database using GEMCOM modelling software. Current and future work can now be added to this database to determine co-ordinates for drilling locations, resource estimates and determine the viability of the stripped open pit.
Glenn Kasner, president of RJK Explorations, commented: “Management is very encouraged by this first phase of drilling at Maude. It demonstrates the high-grade nature of the 5 zone, and I believe with additional drilling, the historic resource estimate can be confirmed and brought up to current standards for resource reporting. But, I believe the real potential lies with downplunge drilling below the 300 metres level, where historic drilling has returned such intersections as 19.54 g/t (grams per tonne) gold over 8.08 metres at the 375-metre level and 12.34 g/t gold over 2.53 metres at the 475-metre level.”
Quality assurance/quality control
The company has incorporated a rigorous quality assurance/quality control program for all its drill core handling and sampling procedures. A chain of custody is maintained for the drill core from the drill to core shack to assay lab. The samples are marked, and the core is sawn with attention to the same half of the sawn core always placed in the sample bag. Certified standards, blanks and reject duplicate are placed in within every sample batch. A batch consists of a specific number of samples dependant on the tray size of the lab performing the analysis. The standard and duplicate are inserted randomly within the sample batch, while the blank is inserted immediately after a sample that may be anomalous. The blank material is sawn core from a unit that appears unmineralized with gold in order to be able to test the crushing/pulverizing cleaning process.
William MacRae, MSc, PGeo, is a qualified person as defined under National Instrument 43-101 standards who has supervised, reviewed the preparation and approved the disclosure in the news release.
Kal Kotecha, PhD, is the editor and founder of the Junior Gold Report, a publication about small cap mining stocks that is read and enjoyed by thousands of investors. From 2003-2006, he was the editor and creator of the Moly/Gold Report, which focused on critical analyses and open journalism of companies profiting from the precious and base metals sector.
He then subsequently changed his newsletter to Junior Gold Report. His reports and articles have been featured on sites such as Kitco. 321gold, Seeking Alpha, the Aureport, Streetwise Report and Mining.com. Dr. Kotecha is a featured writer on Stockhouse as well as both the keynote speaker and investment panel member of ThinkingNorth.com – a premier organization which connects the brightest entrepreneurial talent with the financial community.
The scope of his current activities include worldwide onsite analyses and reporting of developing companies. He has previously held leadership positions with many junior mining companies.
Dr. Kotecha holds a B.A. in Economics and Psychology, a Master of Education and after completing his Master of Business specializing in Finance in 2007, he completed his PhD in Business Administration in January 2016. His thesis was on the Affective Heuristics of the 2008 stock market crash. He also lectured Economics at the University of Waterloo and at Niagara College where he was voted by the students as Educator of the Year 2013/2014 as overseen by the College’s Student Administrative Council.
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