Tuesday, July 30, 2019

Swapping Guyana Goldfields for Leagold Mining

Just a short post on why I sold Guyana Goldfields for Leagold Mining yesterday.

I have to start by saying that my blog is about documenting my journey and strategies to grow money. It's not about you coming here to consume some new content I've created.

I'm not creating anything new here. I'm buying and selling stocks for what I hope to be capital gains. It is not meant for you to do the same but rather what I'm doing.

When you look at the overall market and those sectors that have been beaten down, where is the profit to be made?

I forget anything making new 52 week highs.

Right now I see energy, uranium, lumber and weed stocks providing that value for profit potential. This is a gut wrenching ride of timing the market. Not for everyone. I don't day trade or use margin. I just buy and sell when I see the conditions right.

I am wrong or sometimes sell too soon. I lose but I try to limit my losses.

These trades are usually never meant to last no more than weeks at a time.

I try and then redeploy the proceeds somewhere else.

I talked about my frustration with GUY.TO last week. The stock is value priced but still not participating with the rest of the gold sector which has been on fire for a couple months.

I have no idea what is going on with Guyana Goldfields internally. All I can tell is the market likes better companies. I decided to sell it for a 5% loss and buy LMC.TO instead.

I am really hoping that Leagold Mining will continue moving higher.

Why Leagold Mining?

  • insider buying from 3-11 July
  • positive analyst reports
  • only became a company in April 2018
  • small producer with 4 mines operational
This is my leveraged bet in the gold sector right now. GUY will probably move higher now that I've sold, who knows. It's what usually happens.

I bought 2000 shares of LMC @ $2.14 

I only invest a maximum of $4K in each stock pick

I'm looking to exit anywhere around $3

I will update all my positions again at the end of the trading week.

Until then take care and have a great week in the market.


















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