Buffett said it best. At investing, we have the ultimate advantage. Unlike baseball, where you only have three tries before you’re disqualified, at investing the market spits out prices at you daily, but you can wait forever for the perfect pitch – until the price is irresistible.
There is, literally, no pressure to swing before the perfect ball is thrown at you.
On April 12th, we covered First Mining Gold (TSX-V: FF & US: FFMGF) at CAD$0.44.
Here’s what I wrote back then:
“At today’s depressed valuations (CAD$0.44) , I am absolutely certain that the top 20 gold producers in the world cannot wait for First Mining Gold (TSX: FF & US: FFMGF) to advance Springpole into production and offer takeover bids, because its current value is worth 4-times the entire market cap of the company!
That has never happened before, and it’s the only reason I’m willing to make a power play. After discussing this with my partners, we’re using our joint fund to facilitate this trade.
This isn’t an easy decision. To some, it’s too risky, too nerve-racking, and too sickening to double the initial outlay, after shares have already come down substantially and are priced close to the all-time low. However, I’ve always made my biggest returns when my actions were deemed “adventurous” or “nuts,” as my broker wrote to me.”
Today, we’re up 22% on this trade in less than a month. Gold hasn’t moved higher. First Mining Gold did not release any earth-shattering news, yet buyers have agreed to pay higher prices because this is a REVERSION TO THE MEAN.
You can see how our coverage in mid-April marked the bottom for this company!
The S&P 500 has returned precisely 0.0% in the time frame between April 15thand today.
We have become experts on First Mining Gold, both on the fundamental level and the technical analysis.
Now, we’ve added our coverage of Wealth Minerals (TSX-V: WML & US: WMLLF) to the list, which began today; we’re already up over 12%.
Take a look:
As you can see, WML has plenty of support at the low CAD$1.00 levels, and today it proved again that CAD$1.08 is a range that offers a relatively safe entry point.
Shares have traded over CAD$1.22 today for a monstrous 12% one-day gain, but the REVERSION TO THE MEAN in this instance might have much more upside than currently exhibited.
Portfolio Wealth Global is tracking yet another company, a third stock, which has been sold-off heavily, and we are in the process of vetting on the technical level right now. Once the ideal moment occurs, we will release a time-sensitive alert.
We will publish an interview with Wealth Minerals’ management in the coming days.
We are outperforming the largest funds in the world, and I absolutely love it.
