Stink Bid Territory - great medicine for the investment mindNVO stock is surely volatile, but it has also been a 5-bagger for most investors that got in a few months ago and the trajectory remains upwards. I am one of those lucky investors but I still have reservations to buy dips in NVO. And I don't want to try and juggle fire sticks by timing NVO volatility around unpredictable news releases. Getting caught on the wrong side of the trade with this type of story can really hurt.
Both the NVO and ARV stories are likely to go much higher over the next few months so I am more than happy to sit on both while keeping an eye on the developing story.
However, there is a big difference between NVO and ARV. Purchasing ARV stock now is not buying high nor is it buying a dip. It's a purchase of a stock made while it's in a grinding correction period or even a mild (but final) decline. Basically, a wonderful entry point. The near term upward beta in ARV could be really dramatic - especially if some of the herd chasing NVO decide to jump in to make a quick buck.
There is no way that ARV will remain isolated from positive NRs in the area. ARV will not be ignored by developments in the NVO story and the growing Pilbara Wits 2 realization. The value of ARV is destined to increase (even though share prices may not reflect this now).
NVO stock price is now likened to an expanding spring on a rapid expansion. ARV remains as a compressed spring with a festering charge underneath it. It's volatile upward release is pending.
And when one looks at the infamous BM rant about Artemis (see below), the quote that struck a cord with me was this: https://www.theaureport.com/pub/na/artemis-resources-one-man-band-and-flavor-of-the-week
"Let me give my readers one more simple question that Lenigas should have asked.
Let's pretend Novo's shares shoot up when the original video came out on Youtube on July 11th and Lenigas puts out a press release from Artemis. "Congratulations to our JV partner with their success at our 50% owned Purdy's Reward. Artemis is thrilled to have gained Novo Resources as a valued associate in this venture. Artemis is overwhelmed to have joined the team of Newmont Mining 3rd largest gold mining company in the world, Sumitomo Corporation, Mark Creasy, the most successful prospector in Australian history and Eric Sprott of Canada, billionaire investor and we get the services of one of the top geologists in the world for free and two million dollars spent advancing our projects. Here's my pen, where do I sign the definitive agreement?"
What do you think the shares would have done that day? Well, they wouldn't have gone to the mythical $8 a share but they would have spiked to $1 a share. "
In my interpretation on the above commentary is that we as ARV investors are being presently victimized by the fact that something similar to the above did not occur. And what BM also indirectly implies is what may be the immediate value of ARV if the management had been more savvy in marketing the ARV story and potential resource. And so we suffer the market price based on suspected incompetance of current management. This will not last.
As NVO share prices continue their volatility in the next few weeks ahead (resulting from the new shares coming to market in early September), the investment herd will be fixated on it. Use this distraction to place your stink bids on ARV and accumulate may be the prudent strategy.
Stink bids are very theraputic to a junior investor's peace of mind. They feel so good when they unexpectedly execute. Coupled with the calculated bet that the stock price going forward looks so bullish.
Tx