Morning,
Last year Giga Metals (GIGA/HNCKF) was and till is my top nickel junior holding, and I recommended it here in the E-letter for a long time during 2019. Nickel fell off hard into early 2020, but we held and even doubled our position in 2020 in premium. It has been on my list of big winners to update here,that I haven't (e.g. Abraplata, Outcrop etc) in awhile, after I had addressed a handful of under performers first in July.
Premium members had our model portfolio position in Giga up to a 4% holdings peak back in March/April when it was about .17 CDN. 4% in a non core gold/silver position is the largest on the books in our model portfolio (usually it's 1-2%). We sold 1/4 (1%) on the recent run into the .50's, and just today, I sold another 1% on the US ticker at $1.30 HNCKF.
GIGA is halted (HNCKF has been open all morning) but showing an opening price of $1.20-$1.30, depending on when it does. If it pro rated to the US earlier, it would have already hit $2 today. We still hold a 2% position, which is very significant, considering our cost average is under .25 CDN or so. For those of us buying the extra shares in March/April, we have a 10X on that and 5X on the rest. Now we have booked huge profits, removed all risk, and still have large exposure to the future.
The run recently was due to Elon Musk encouraging low carbon production of nickel in North America, and that they would "buy it" all essentially". Today the massive move comes from press reports that the two companies are "in talks". This is not news coming from Giga FYI, which is what the exchange is asking them about I'm sure. If it is actual "news", I'd be surprised, because the company is not the type to announce an "in talks" press release with the biggest prospect in the world for a quick run in the share price. Giga is and has played the long game, and does it right.
But, Ithink it unwise not to take money off of the table here, even if free readers back in the day bought in around .40, and didn't add more on the pull back in nickel. Let's hope the rumor momentum keeps rolling, but these things have a way of vanishing quickly if no deal is announced, which I think realistically, is premature at this point.
Eric