Hello and welcome back to CRI's OnlyDoubles Profit Spotlight.
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.
Regular readers of my blogs will know that by nature I am a very conservative investor. I look for deep discounts to value, never risk more than 5% of my total stake on a single investment idea and stick religiously to the notion of selling half of your position on a double (hence the name OnlyDoubles). Typically, my hold period is between four to six months and I can have more than a dozen stock positions on at any one given time (not to mention options). Usually, I do my DD and if I like what I see, I slowly accumulate a position. Most of the time, a stock or an option gives me plenty of time to take a position and then write up a nice 'Rational' case for buying it. Best case scenario, I'm in and then you all get in. We all have the same price target in mind and we all get out in and around that area.....makes sense no?
After an almost two month pause, CRI's Only Doubles has another winner!
CRI published a report in CRI's OnlyDoublesNewTrades on Novermeber 30th, 2010 on Weststar Resources Corp. (WER.V). The stock was initial purchased in and around the $.30 area. Today the stock is currently trading at $.86 for well over a double! This trade took about 3.5 months to develop and come to fruition which is actually a little faster than my expectation window of 4 to 6 months...
The stock has been moving up recently on the news that it is in the process of purchasing a past producing mine in Mexico (news link: http://tmx.quotemedia.com/article.php?newsid=39919015&qm_symbol=WER).
Those that were fortunate enough to buy some in the thirty cent area are well advised to sell at least half of your position (to get your initial investment dollars back in your hands) and let the rest ride. Once the sale is complete, there will be no risk on the remaining share position (cost basis will be $0.00). While I am not totally sure where this stock will go in the coming months, it is generally a good idea to create a risk free position whenever you can and I myself have gone ahead and done so...
Isn't investing fun!
That's all for this issue of CRI's OnlyDoubles,
Brian Beamish FCSI