It’s been almost six months, but the hit taken by my back pocket in Argonaut Gold (AR.to) is still fresh in the memory, testament to the trauma involved. It’s one thing to take a 27% loss in an exploreco spec trade, quite another when a large position gets flushed down the toilet the way it did with AR in December (4) and what made it worse was how the trade was doing nicely (1) (2) just one month before the Magino capex news blew the equity into a million pieces:
It also means I’ve taken a keen interest AR’s price moves since then (not going back though, no way José) and when the company made its shameful admission on May 11th (5) I sure was glad not to be on board. However, the prompt for today’s post on this ongoing trainwreck is its the recent price action, not just picking at personal scars. The last month has shown a classic dead cat bounce and with AR hitting the Loonie line this morning (6) there’s every sign that longs about to go through another round of BOHICA*. The world is watching carefully these days and AR doesn’t just have a newly re-re-re-hiked capex number, it also has to find the financing deal to cover it and the market message this last couple of weeks is not good at all. Right now, I’d rather hold Vladimir Putin’s penis than AR shares.
*Bend Over Here It Comes Again