Today we reveal the secret of good stock selection and how to pick one’s way through the minefield that is the Canadian junior mining sector, but first a quick preamble. Over nigh on three years, The IKN Weekly has a track record of stock selection that currently reads 40 trades closed as winners, 17 trades closed as losers and one break-even. Also, at this time there are six trades open running a profit, six at a loss and one unchanged. Now for sure, it’s not a 100% record (46 out of 71 is 65%) and not only that, this type of count doesn’t take into account the difference between small losers and triple digit winners, or the difference between a small trade in a risky stock that went wrong or a larger bet in a more strongly reco’d stock that went right (or vice versa, of course), but it’s a guide that is fairly representative over time. The IKN Weekly is not one of these stupid services that pretends it never picks a loser, it’s based in the real world, calls its trades, shows every single one made, warts and all, in every edition, and concentrates on picking more winners than losers.
So now to the secret! We’re taking the massive step in revealing the deep and mysterious method we use in order to be successful over time. It’s luck. Pure, undiluted luck. We offer examples:
- We choose certain stocks because the IR departments cold-call us, show us a fancy presentation and we like it so much after five minutes’ study that we immediately buy the stock and tell others about it.
- Other stocks are chosen because they have pretty names, or ones that sound cool.
- Boothbabes are an important signal. The prettier the assistant hired to hand out pamphlets and free pens at the trade show, the more favourable the outlook for the junior mining company that did the hiring.
- When all else fails, a good game of stone scissors paper is a good option to fall back on. Or a simple coin-toss.
- We also find that stroking a rabbit’s foot while considering new names is near-failsafe.
- On the other hand, we avoid certain stocks that don’t have flashy websites because they obviously don’t care enough.
- Other stocks are avoided because their tickers don’t sound very attractive.
- Or because the management looked at me in a funny way once.
And there it is in a nutshell. The good news is that you don’t need to comb and filter through the thousands of companies that the junior mining sector has to offer. You don’t need to know anything about mine engineering or geology, there’s no need to bother yourself with visiting projects or company HQs to speak with the officers or see what’s going on at grassroots level. Above all you certainly do not need to be able to read and analyze a balance sheet, or a P&L sheet, or a statement of cash flows and there’s no necessity to spend hours reading through the regulatory filings or building your own spreadsheet models of a company to determine whether they’re potentially good investments.
Yes folks, it’s just plain luck combined with a blind trust that the company you choose will do what they say they’ll do that will make you umpteen millions as a junior mining investor. So relax, plan that next fishing trip and before you go, buy yourself a few stocks and you’re on your way to the type of two-winners-to-one-loser ratio that The IKN Weekly enjoys. Because remember, all we do is pick ’em out of the lucky hat as well. That’s the secret…plain luck. And now you know. Have a nice day.