GREY:RDEMF - Post by User
Post by
GuyInPhoenixon May 02, 2016 8:51pm
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Post# 24834997
Thoughts on the Day
Thoughts on the DayHi, everybody
When I saw the trading halt and the gap up opening, I didn't want to comment too soon or throw gasoline on the fire. I want to try and be level headed about it.
Obviously, I remain optimistic regarding the improving fundamentals, the recent funding announcement, and the transition to production which is scheduled to take place in the 2nd half of this year, per the company.
But because of the wild price action and high volume, it is probably a good day to talk about risk.
When you have a stock (or a sector) racing higher, it is a good time to remember that the junior mining sector is one of the most volatile and risky within the market.
No matter how much you fall in love with a particular story, you should avoid concentrated positions. And diversification doesn't mean a group of junior mining stocks -- you should try to diversify within each asset class and across asset classes.
If you get lucky enough to have a stock run higher, think about taking some profits along the way, to further reduce risk.
That is what I intend to do with my Red Eagle shares. I love the company but I want to be sensible too. There are stock-specific risks for each individual company (jurisdictional and otherwise) and then you have the various macro risks.
So, again, I remain very optimistic but I want to caution others to remain sensible and practice the basics when it comes to investing and risk management. Do your homework when it comes to individual securities (something I sometimes have to remind myself about) and seek out the advice of competent advisors.
Continued best wishes to all and I look forward to the continued news flow from the company.