Was following species for a good 6 months before plunging in. Bad timing too, since almost everything last year post-April was rising!
I thought - at the time - gold is going to go for a bull run. I believed that the economy is going onto a faux recovery (I personally don't believe that politicians around the world have done anything to eliminate the issues that created the deflationary debt bubble - ie. GFC). I still believe this to be true.
Anyhow, AAM at the time ticked the right boxes in the sense that it was an explorer moving into production of something that will only be worth more with time down the track. It had a fair bit of resources in the ground, the gold pour was going to happen in December - I bought in on Nov 20 - and I had been watching it for a while, thinking, yeah, it's worth at least 55c if this pour goes successful, and I've already watched it go from 22c -> 28c, better get in quick before I miss out!
Well, there I was, December approaching, gone, no gold pour, slaughtered share price... hmm, announcement came, oooh they hit a small delay, no worries, it happens even in the biggest industries (I work at an established Alumina refinery and let me tell you, there are so many snags that occur that nobody knows about - but on average, it's all good), so what can I expect from an up-and-comer. Oooh it's heading north again, better buy in some more at 32c... oooh I'm still in the green, this gold pour and related stuff is coming soon...
Anyway, I'd say naivety in believing in the management is to blame. I always told myself that when I invest, it's long term (2+ years), when I trade it's for no more than 1 month. I intended on "investing" in AAM and put it on a set and forget attitude. Even when I had the value erode.
I have learnt my lesson over the last year as I've realised that "blue chips" are definitive long term investments - however I'm yet to buy some as I just don't have the cash to put into shares. Short term "trades" should be under $2k for me and have a trailing stop-loss, never expect to make or lose more than 10%.
P.S. I also believed in the "dream" at the peak of the rally in BCC... bought in 20k shares at 12.5c. Now still have them (set and forget attitude, oops) at 4.3c a share.
Not a good year.
AAM Price at posting:
12.0¢ Sentiment: Hold Disclosure: Held
