Closing REMX and a Secret Situation
Another big short-term win. Another highly prospective speculation
For future reference, this is published August 12 before markets open.
Closing REMX
When I started writing about a coming super-bull in rare earths, few had ever heard of the sector.
By the autumn of 2024 that had changed. At least those following the U.S. presidential election or global geopolitics were hearing a lot about rare earth elements, but still few were investing.
Even when entering REMX as a special situation 5 months ago, I could have called it a stealth situation. The sector was receiving little attention in the financial press or among fund managers.
It opened the next day at $41.49, and over the following month fell to nearly $32 during the brief bout of general market sobriety in April.
It last printed $57.49, up 38.5% from the suggested entry in fairly short order, while now the rare earths sector is at the top of financial and political news some days.
I’m not turning bearish on REMX or the sector. It’s just no longer a special setup or stealth idea.
Unlike most publications, here we won’t pretend readers have an infinite bankroll to keep adding new positions. To have capital to deploy, usually something has to be sold.
I’ll be holding some REMX for the longer term, while for the purpose of this publication the position is closed at today’s opening price.
What to do with the proceeds? Holding cash is a smart idea, in itself a valuable hedge.
When the bubble pops it’ll be fast, furious, and there probably won’t be a quick bounce to new highs as happened this year, after 2022, in 2020, after 2018, etc.
The real difference between winners and losers over time in the stock market will come down to who has capital available after the reckoning and has the guts to deploy it. Another major factor is compounding, which is why I like to book some or all of outlier gains in a short amount of time when that’s possible. Doing so also keeps the hit rate super high while the risk/reward ratio stays low.
There’ll be many great opportunities before the next crash though. Certainly on the short side, while once-per-decade bullish setups are not far off in oil and gas. I’ll be suggesting some soon enough.
Secret Situation
Impatient? Looking to scratch a speculative itch?
Of course anyone using any resource to make their decisions must ultimately take full responsibility for their actions, entries and exits. In order to make those decisions, some form of due diligence must be done. Visit websites, review charts through your own lens, go with what you know, and if in doubt stay out.
I aim to lead you to good ideas, early, or off the beaten path. What I don’t do is write a long, complicated, highly-detailed pitch to convince readers of a timely or unique opportunity.
Like most, when I review those types of reports I first scroll, and scroll, and scroll all the way down to the bottom to get the company name and ticker. If you did that here, that’s ironic.
To liven-up the format, this next idea has a bit of mystery to it requiring a little extra effort on your part to participate in it.
By reading this, those seaRching for another COmpelling junior explorer will find the ticker obvious, especially when “searching” for it in Spanish.
Not everyone has the Resources to buy something trading, for now, solely in Canada, however everyone serious about making extreme gains in junior venture speculations during a commodities super-cycle will have access to Canadian markets. Access to Australian markets may also prove useful.
It’s not just about commodities; cannabis and psychedelic therapies companies were listed in Canada long before those same companies were able to cross-list in the United States. By then, many of those companies were priced 1000% higher than their Canadian debut.
Back to the new idea, it has a highly compelling technical setup below $0.20 CAD. That’s also the price at which presumably “smart money” recently invested into a private placement.
It has an experienced board, and the very tight share structure is a major draw; less than 13 million in the public float and a mere 25 million total shares issued.
When a company virtually unknown to investors makes new appointments to its board, raises funds and strikes deals for property acquisitions in the sub-sectors we favor, all while the chart has a certain look, that’s the “sweet spot” for entry.
I’ve been watching it and accumulating for weeks, with an average cost around $0.16, and the trading activity observed suggests patience among holders of large share allocations. Presumably they’re expecting good things to come. At the same time, those investing in the capital raise will have positions locked-up for 4 months so they too must be comfortable holding in the current price range.
It closed August 11 at $0.185 and I’ll keep adding periodically below $0.20 while holding with no stop.
Above $0.20 it’ll be at an all-time high with only blue sky above.
Whatever comes, remember to always have fun.