Post by
Countrygent on Sep 10, 2022 12:41pm
Opportunity and value
Reading through the thread, Zorg you gave good advice about identifying undervaluation, waiting for entry points when sectors are out of favour, then being patient.
When the FED takes away the punch bowl as they have this year, the amount of leveraged money that flows out of the more speculative corners of the equity markets is staggering. And accelerated by short side players who then, predictably, overplay their hands to the downside as well.
I long ago gave up looking for confirmation for my own assessments of value from market pricing. The junior metals explorers are notoriously poorly valued by the market combined with the borderline illegal out outright fraudulent market manipulation that occurs, sometimes with connivance of insiders, sometimes entirely beyond the control of management.
TUO's price drop has surprised me as I had wrongly speculated that global uncertainties might keep the gold price stronger. But the US dollar once again has shown its resilience and position as the preferred initial refuge from uncertain markets, and the binary relationship between the dollar and gold asserted itself. But gold will yet have its day and the US dollar will devalue eventually I believe.
I'm underwater on my TUO position and content, very pleased with progress on Harry and Treaty Creek, the value proposition has only improved. I may allocate some other gold positions into more TUO.
But patience is of course required. This is not a "get rich quick" scheme. But next up cycle for the junior miners and gold, pretty well (and cheaply!) positioned from my point of view for extraordinary gains..
cg