My Most Bullish Stock.
I went straight in with a 9% cash position when this stock was brought to my attention, and I’ll explain why.
As bullish as I am on Argentine mineral exploration stocks for the upcoming drill season in the mountain ranges (commencing September, October), I’ve never committed as strongly to a position in a stock that ticks as many boxes as this one has.
I’ve even mentioned it to my family and friends, which I am always cautious about. If history has shown me anything, and if I’ve learned anything from my mentor, it’s that this presents an opportunity worth mentioning.
The stock has gained +45% during the market pullback and recent (short-lived?) liquidity crisis.
“Pay attention to what doesn’t go down or gets off lightly during those times”
I have to thank a subscriber (John) and my mentor (Ferg) for bringing this opportunity to my attention.
One thing I notice throughout social media is that people are too concentrated on one investment theme. While they’re likely experts in that field, it’s vital to remember that there are other sectors out there that present opportunities. As I keep harping on about, there are opportunities with much less downside risk through tangible assets.
I’ve been able to use this to my advantage over the years, having a foot in the door with mineral exploration and working as a geologist in Australia while learning from my mentor, Trader Ferg, about how he looks for opportunities in the market. (You guys can learn too—just subscribe to his Substack for the best value for money you will likely spend).
For me, combining the two has been great for market returns. It comes with plenty of risk but also high rewards. Just remember, in this game, if you position yourself correctly, you only need to be right once (I hate saying this, but it’s true).
Such is the case I recently heard about in Argentina. One investor jumped into FILO Corp in 2019 when he saw just how big the porphyry copper-gold-molybdenum deposit in San Juan province might become, and he is now comfortably retired young as the company hits a C$4 billion valuation.
On the complete other side, and where I’m focusing attention for today’s article, I’m reminded of when I got a message from Trader Ferg in April 2022 noting that Diamond Offshore had just relisted after restructuring at almost half of its most conservative book value. Since then, it has returned close to 100-150%.
Let’s take a look at what I believe is another great opportunity.
This stock offers substantial upside potential with tangible assets and growing revenue in a region where the sector outlook is strong, and the government’s positive mindset strongly supports sector improvement.