leverage through exploration and pog, page-68

"when i see fuel at 130 or below & get every last drop i can in the tank, it is the same with Abu when i see them on sale at 3.5 cents i just think it is great. one mans trash is another person treasure.
every day they are finding more gold & filling in the jig saw."

Well said Allday.

Mid last year when I first came across SLR, I thought the stock looked like very good value at $2.40.
I thought it was worth at least $3.40.
I noticed it had been above $2.40 a year earlier and had finished a long correction when I came across it. They had made great progress over that year but still the sp corrected (sound familiar?). I not only bought at 2.40 but I averaged down on that one as well as it fell to 2.10.
I sold my entire holding just 5 months later at 3.80 thinking it might have gone too far too fast. I was looking for that gain over a 12 month period so thought I could sell and buy back cheaper. I got back in recently in the low $2's again. I am back in at the same low price again despite more progress again since I first bought.
When I see bargains I like to buy.
When I first came across ABU they did not have a resource at OP or the sampling program. It was very difficult to value. Despite that I had to watch it go to 8c while not holding.
Then it corrected for a long period (similar to SLR) despite strong progress with the sampling program and drilling leading to a jorc resource.
I was able to get in at much lower than 8c despite positive progress and at a time when I had something concrete with which to come up with my own estimate on value.
It continued to fall as I grew more confident with my research so like with SLR I averaged down. My initial entry (5.2c) was small and I knew I would want to buy more if I became more confident (that is my strategy with every stock I buy).
Luckily for me it fell further rather than reversed higher as I bought more. My latest (small) parcel has been at 3.7 bringing my ave price down to 4.4c now.
I very much prefer a 4.4 ave price to a 6c average price which I may have paid if it started climbing after my initial entry.
I would not have bought as many at 6c as I have now at 4.4 for the obvious reason that at 6c the upside is smaller and the potential downside is larger.
This is a long term holding for me so the lower the entry the better. I have other stocks for trading.
With long term stocks I love getting the chance to average down. I don’t like doing that with trading stocks.
My latest batch on ABU was paid for with recent trading profits.
I will keep putting future profits into ABU while it is offering such strong value or until something better comes along (I think it might be a long wait for the second option).