Today, December 27, 2006, is the first trading day of 2007 (since all transactions today officially close in January). As described in my weekly commentary, we guessed correctly that The Dines Letter (published December 22) woudl recommend both SAN.V – Santoy Resources Ltd. and MAW.V – Mawson Resources Ltd. I wrote a blog post saying Sell Santoy – Hold Mawson, on the basis that that Santoy has already had a big run, and I expected a follow through today.
As it turned out, both Santoy and Mawson were up very strongly today. Mawson is up 27% as I write this. That’s a big run, so I’m selling, with the goal of buying back when the stock pulls back over the next week or two. I sold Santoy at 98 cents and Mawson at 2.06. I hope to repurchase Santoy well below 90 cents, and Mawson well below $2.00. Now we get to find out whether or not I sold too soon.
{ 10 comments… read them below or add one }
Good job.
Shorted 100,000 at .97-98 cents as RSI shows exteremely Overbought.
lets wait and see
VB
I agree that at 97 cents Santoy is extremely overbought. However, I’ve never been one to short potentially powerful stocks in a bull market (and uranium is obviously a bull market). I don’t disagree with your approach, it’s just not something I do. My theory has always been that the most you can make shorting a stock is 100% (if the stock falls to zero), and I plan to make a lot more than that on the long side.
However, I sold the stock, and you shorted it, so we are both on the same side of the ledger. Now the real question:
When do you cover your shorts, and when do I buy back in?
I sold only 20% of my position @ 1.02 with 60% gain. I expect SAN to behave same way Cash Minerals did after Dines made official recommendation on it!
I agree with you, which is why I sold. Cash Minerals made a high of $2.24 on September 5, and then fell to $1.23 on October 18, before spiking briefly to $1.98 on November 30. It has since slid to close at $1.49 on December 27. I’m guessing that this was Santoy and Mawson’s spike; the uptick may last for another day or two, but I don’t expect 25%+ gains every day, which is why I took profits.
Long term Santoy and Mawson will be higher, so taking 20% off the table is a valid strategy. My strategy only works if I am disciplined enough to buy back in at the correct time.
COVERED MY SHORT AT .94 CENTS .
.05 CENTS PROFIT ($5000) IN 1 DAY…..NOT BAD
VB
just got wind of your thread. nice work.
long time subscriber of dines. he’s made me lots of cash.
follow the uranium board on siliconinvestor as well.
are you following ulu? or urz?
just picked up some uuu… hoping not too late! good picks
Thanks for the comments. I will review ulu this weekend; my preliminary thoughts are that it is up 21% today (December 28, shortly before noon Eastern time), so it appears it may be too late on that one.
As for urz, it looks more promising, since it’s been consolidating since the end of November, and may be ready for a nice run. I’ll post my comments this weekend on urz as well. Thanks for the heads up.
In fact, if I get the time I may compile a list of all of the uranium stocks that are out there (traded in North America) to see if we can spot some more winners.
Just discovered this blog by googling for news on Pinetree. Very very useful. Impressive portfolio performance.
Am a uranium investor myself, mostly following Dines tips.
What do you make of the Pinetree situation? If there’s something dodgy there, does it cast a cloud over Mega as well?
sounds good.
there is some discussion about ULU over on http://www.siliconinvestor.com/subject.aspx?subjectid=18729. some are still buying. citing the report that is due out in january 2007. one guy thinks it could hit 4-5 dollars if good news. so maybe it isn’t too late. i picked up some shares today.
some other sites posted on that board listing U companies:
http://www.preciousmetalresources.com/canadian/uranium/marketcaps/
List of Uranium Stocks
and another stock: CMK.to
bought this one today on speculation… pinetree has been accumulating it (http://www.canadianinsider.com/coReport/allTransactions.php)… might be worth looking at.
on that note… interesting thought to just mirror pinetree’s portfolio… but haven’t really looked into whether that is a good idea or not.
cheers!
AR
GOOD JOB ON CMK.V
VB
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