A quick review on how I got a small position in Azimut Exploration after the following news release:
Disclaimer: I want to stress this is more a proof of concept than a solid everyday implemented strategy. Still owning shares. Never been paid.
Trigger 1 – Headline
2020-01-14 11:31 ET – News Release, stock is halted
Step 1 – Review release
In this order:
- Figures & maps – I always start with the maps, words can be twisted, (good) visuals are a lot harder to deceive
- Grade distribution, hole locations (distance, direction, open?), near surface, potential, further assays pending?, historic holes highlighted? etc.
- Asset location & ownership (100%)
- Comments from CEO/GEO: What do they stress, what not
- Headline & summary
Trigger 2 – Buy signal from @Miningbookguy
I shoot some short messages forth and back with Nick. This is the actual trigger to carve out 30 minutes.
Step 2 – Website check
- Latest presentation
- Mgmt team
- Share structure – Ownership mgmt – free float
- Ownership asset
- Financials – warrants – last financing
- SEDAR filings – quick skim, tb reviewed at a later moment in detail
- All in all a 15-30 min scan, quick and dirty
Trigger 3 – Other peers
Interest online picks up. I exchange some texts with @Siebebreed & @snoek. Nobody can give a definite opinion on the results yet (great, otherwise they would be liars), but all are excited and are on the buy side.
Before long other very valued peers have picked up the news: @Martin , @Luctenhave (watch out when they team up) & @Stateside ( http://www.statesidereport.com ).
Enough credible voices in a sea of noise. Know thy peers.
Of course you need to know upfront who you can trust/rely on to ask their opinion. Knowing in full, this is a very speculative situation and only one guy is to blame if things turn sour. The man in the mirror.
I decide to take a small trade position.
Step 3 – Place an order
Easier said than done. The stock opens +100% and jumps up and down between 95c and 1.10c in a blink of an eye. I decide 1.02 for no other reason than that it fits a round number of shares for my indented cash injection. This is worth a lot more than a 60 Mil MC, a few pennies different isn’t the priority here, the timing is. People are catching on and are waiting on the market response/direction to jump on the train. I just need to be one of the first to actually jump on it.
Step 4 – Keep an eye out
During the day I’m keeping an eye on interesting inputs from others & the SP, which does more or less what I expected. Churn some profit takers volume, a dry up of volume, a tick higher with every new trade. I’m set.
Re-reading the presentation a third time, the stock closes at +200%. A +50% day move for me. Now Step 5 is looming… stay or go?
Edit: A summary I couldn’t have written myself any better;
Cheers, Pete
Awesome post! Keep up the great work! 🙂