This is not that hard1. Observe how gold has started to climb and is up against its 200 day moving average.
2. Observe that numerous gold stocks have lagged gold's move.
3. Notice how miner's stocks historically move more than the underlying metal, gold?
4. Learn how Waterton made an investment in NUG several years ago, which doesn't fit it's business model (size, for one thing). It is no sleight to NUG that Waterton is selling. It was a vote of confidence that they invested.
5. What's the one thing people are reluctant to do with stocks? Answer: Buy when stocks are on sale. We think of ourselves as contrarians, but many of us are sheep.
6. The day will come when Waterton stops selling. Several days of big news are also likely in the next six months.
7. It takes courage to make an informed bet.
8. Waterton invested $3.5mm to buy 28,25mm shares at 12.5 cents in August 2014. We know a lot more now than they did then.
9. In June, 2015 Waterton and others came back for more at 12.5 cents. The total was 18.3mm shares totalling $2.28mm. Waterton had the courage then, even though NUG didn't fit their profile.
10. They invested more after NUG announced high grade drill results on May 7, 2015, "including: 25.2 grams of gold/tonne (0.8 troy ozs) over 4.6 meters within 41.2 meters (135ft.) of 3.9 grams/tonne that may represent the high grade horizon that we have been targeting."
11. May 7th, this year is less than a month off.
12. On March 3, last year, Barrick converted their land interests for 30mm or 16.7% of NUG's shares, becoming NUG's largest shareholder to date.
13. Then on April 7, last year they announced Oceana had invested $6.67mm at $.14 per share for $47.66mm shares, putting them at the 19.9% ceiling.
14. Soon thereafter, Toqueville acquired 19.5mm shares at $.20/share.
I could continue...
But, does history repeat? No, but it often rhymes. Don't miss the bus!