Fundamentals always win.
Based on fundamentals I took a huge bet on two super dogs RMS & SLR around the GDXJ selling saga.
I always had them but at that time thought was a once in a lifetime opportunity, so loaded up to my eyeballs.
Both of them had very sound fundamentals, yet the price looked disaster.
Boy.......both of them gave me so much pain in a sense that a good lot of my money was in RMS & SLR...roughly( 60-65%). Share price kept going down.....from 60-70 to 35c.
I would never have thought it could go as low as 35c.
Some of my friends who sold out suggested me to do the same declaring them as permanent dogs and will never go up. Although it was extremely difficult to hold onto a large position as the market punished me on daily basis. I just would not sell for a loss.
Now I am happy, took most of my money out of the dog transformation into Greyhound and now holding reasonable positions ( enough so I can sleep without worrying about them anymore)
The lesson I got out of this is .....if I like a company, fundamentals are sound, managements are reliable, then take a position just enough which can be held comfortably.
Rest time and market will take care of it.
My only fault was taking too large a position....more than I could handle.( Handled I did with pain)
But no complains now. All good.
As they say all well which ends well.
RMS has a long way to go.......the only reason I am selling is to trim my position.
It is still a good value(for its production numbers) relative to other miners in the market.
RMS Price at posting:
60.3¢ Sentiment: Hold Disclosure: Held
(20min delay)