The market is doing the classic mistake of treating a company...

The market is doing the classic mistake of treating a company like it is a person. A person’s history is a good way to judge their future actions, but a company is not a person. It is the people running the company that matter and when they change then the past of the company becomes irrelevant.

The number one investment class I look for is basketcase companies where the management and opportunity have changed, but the market keeps treating the company like it is a basketcase. My most recent example of this approach was the gold company SPR (the old GCY). GCY was a total basketcase for many years destroying shareholder capital and generally failing to deliver anything other than massive losses. There finally was a change of management who were smart enough to follow up on some of the interesting drill results the previous clowns ignored and suddenly they found a new million oz high grade deposit right next to the mill. For ages the SP sat under 10c allowing me to accumulate a large position at give away prices. The SP is now 5x higher after the market finally woke up.

While these opportunities can be hard to find, when you do find them they are as close to a magic money machine as you can find on the stock market.