Here you will find past OnlyDoubles trades that have been recently closed. This blog's purpose is to update the public on recently completed OnlyDoubles trades as a demonstration of the model and a teaser to get you to subscribe. If you would like to learn more or subscribe (for real time access to OnlyDoubles NewTrades) please visit our Subscription page.
CRI strikes again!
In a hot market, many of the junior stocks that have sat dormant for months on end seem to magically come alive. This week we review a trade that took very little time to develop but that has been on our radar screens for quite some time.
Regardless, TIX-V represents our third double (in as many months) in the Junior cap arena and our fifth since starting this blog in July. That is pretty damn amazing if you ask me...
so here then is the profit write up on TIX...
TIX came to CRI's attention in earnest this summer when it started to meet CRI's venture Cap Investment Model criteria (Please refer to CRI's Investing in Companies seminar material for more on this model and how it works).
Specifically, TIX has a very low share count (23 million shares with about 10 million tied up in escrow). As well, there was substantial insider buying of the stock (through options to director, link) through the summer. And finally, at .05/share, the company was trading at a HUGE discount to its tangible book value per share.
In essence, the company was trading at pennies on the dollar and the insiders were lining their proverbial pockets.....and people are surprised that the rich get richer while the poor get poorer.
Technically, the stock registered a very well defined double bottom in price through the end of the summer. It broke out the week of Sept. 20th at .04 and we were fortunate to buy at .045.....
As you can see from the price chart, a simple 50% retracement of the spring/summer 2010 bear slide ought to bring prices back to .11. Since a move to .09 would represent a double, CRI put 1/2 of the position up for sale at .095 and was filled two trading days ago. With the stock now at .10, we can comfortably suggest that CRI was correct in the call....
Going forward, the fundamentals are still very positive for the company. While the underlying metals market can remain strong, I see no reason to touch our remaining 'free' shares. In fact, I plan to get ready to sell another half of the position at .19....
...speaking of trades....do you know which market CRI's OnlyDoubles is trying to take a position in right now? Seems to me it's worth $100/year subscription to find out....
OnlyDoubles NewTrades)
That's all for this issue of CRI's OnlyDoubles,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com
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