Club Mulgoa

Monday, March 07, 2011

SSN

DJI is down. POG is up. Oil price is up. So buy gold and oil stocks! That simple; BEFORE Gaddhafi took (yes, past tense) out on his citizens. And before the Saudis riot and before the Bahrainian government collapses.

Imagine buying it at 18c in 2008, to see it dropped to 1.2c. My wife must think I am mad to take up the entitlements. And I even applied to get another 100,000 shares because it was so cheap. At that time, this is not a popular stock at all so I received all my entitlement and all the extra new shares.

The SPP was pitched at 3.4c but I didn't buy because the market price was falling. When it hit 3.1c, I went in and bought some more. I was on my own with no more tipster highlighting it. After RB's recommendation when the stock was at 18c, all subsequent top-ups were done using my own judgment.

Maybe a gasman's head isn't all that clouded by his gases. Yesterday, it was 20.5c and because it has risen in NASDAQ, it is expected to climb further. I have made >600% profit on it; mostly bought less than 18 months ago. Why invest in BHP and RIO, or worse still, the banks?

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