Sunday, February 19, 2012

OnlyDoubles Profit Spotlight for February 17th, 2012

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 10 month pause, CRI's Only Doubles has another winner!

We first looked at LAR (La Ronge Gold Corp.) back when it was a diamond play in nothern Ontario (and was called Chalice Diamonds) in April of last year. The stock had been recently rolled back, options were granted to new directors and there were shares issued in the new company for outstanding outstanding - all the hallmarks of a classic VCIM model play. The technical signal to buy came in when the stock registered a double bottom price pattern and broke out from $.145 cents. 

After the reorganization, the company moved from the diamond to gold exploration industry. They acquired a property in northern Saskatchewan that had historic work done on a respectable gold deposit. The stock is running higher now because the company is currently drilling new holes that will hopefully confirm the historic (non 43-01 compliant) data. The stock hit a high of $.38 cents on Friday February 17th, 2012. This is well above our entry of $.145 and represents more than a double on the trade. For those that have not already done so, taking some profits at this point seems only prudent. Exactly where, is up to you. I myself am looking for this stock to enter the low $.40 cent area (which is only .03 away!) so I may be selling a bit myself soon.

That's all for this post,
Brian Beamish FCSI
The Canadian Rational Investor