Definitely not okay.
My decision to bet against the shorts sellers was a blunder.
I had quite a money tied up here.....and was adding to the last day before quarterly. The insiders were selling and I was buying. Wasn't thrilled to read the report at a quick glance, but after reading few times till late night, I came to the conclusion that tying up so much capital here was not a wise thing anymore.
I am a little slow adding 2+2 and wrong quite often.
I had build up a position around 2 million as my assessment was they were cheap. They were definitely cheap for a reason. I was also prepared for a cap raise which I thought at a higher gold price may happen at a higher price. I now think it may happen at a lower price or may not happen...I don't know. Money from investors might only come at a bargain.
Regardless, it just didn't felt right to keep holding. So this morning I sold 1/3 of my position. Now holding 600k shares and will monitor carefully. If the share price dips below .145 then those will be sold as well.
Many times stocks run just after I sell....that's why I have kept 1/3 of my holdings.
I have experienced the bloodbath in TRY(took a huge loss), but fortunately avoided the final washout, or else I would have got half of what I saved from TRY. Recently I saw BLK disaster which I always stayed away from it and never bought 1 single share in that company.( I even made aware of there problem to the BLK holders, which no one listened). BDR can end up like that.......I don't know but the uncertainty was just too much for me to handle anymore. I am not sure if that was the right thing to do but after all this if I still didn't acted today, and this thing goes down, I will get hurt seriously.
I decided to move the money to some other gold stocks in my portfolio who are doing quite fine but is still not appreciated by the market. Those companies are making money with a good healthy cash balance and no debt, good gold price hedging and after all that the stocks are hammered down everyday. So, I see an opportunity to reduce my risk.
I had doubts in BDR's initial December guidance which came to be true.......and after so many broken promises from management....time after time of under performance....I am tired of their excuses.
The whole thing is about confidence....and when that is lost or dented.....moving on would be the best course of action. As in the words of Dickson G Watts "If uncomfortable sell it down to a sleeping point".
I could be wrong and this may be the final opportunity to buy at this low prices. I don't know. I am not sure of anything now. In that scenario saving some of my money became the most important thing.
That is what I have done. I still hold 600k shares which is a lot for a retail investor. If BDR gets up on its feet and start running.....those holding will make some money. If not then those will be sold as well.
BDR Price at posting:
15.8¢ Sentiment: None Disclosure: Held
