MEP

This company has a fantastic record of discovery.  Not small tiny ones but big ones.  However, its record has been tarnished in the recent years with less spectacular performance.  Yet, quite a few analysts still hold a lot of respect for its quality of search.

And today, I have regained nearly all my losses with this stock....

ABU

Today, it announced that it has found more veins with rich visible gold.  So the market marked it up.  But history repeats itself....  Soon the share price will fall again; investors have such poor short term memory.  I always wonder who are these sellers.  Or to be more precise, WHY they sell in the presence of recent good news.

LNR

My resource stocks have been disappointing.  But LNR which has been disappointing for so long has suddenly show remarkable resilience!  I have almost forgotten about this stock which used to be AMU.  It is hard to believe that it has survived!  It had been extremely promising but has been plodding along.  Nice to know that it has gone positive again but it is actually still a loss when you consider inflation.

TON

This has gone crazy.  Unless there is impending drilling results known to insiders, it is irrational exuberance to the hilt.  I bought at 6.4c average, twice in August 2013 when it kept falling in spite of finding more graphite.  I nearly sold some at 49.5c a fortnight ago but took the for sale sign off.

Today, it returned to the market after raising AUD$8 million via a placement at 50c.  It fell first and then rocketed up to 79c.  If it emulates SYR, then it still has a long way to go.

Buying stocks when it is fearful to buy...

When investors are dumping like lemmings, AND the announcements by some stocks are good, you are just as fearful to buy.

Of course, not all good announcements are truly good.  GTE announced great drilling grade but somehow, it jettisoned its Kazakhstan tenement because it is not good enough.  And it has tenements next to SFR which it has not drilled yet.  It has been a big let down recently.

ALK and SLR have not been performing either.

However, contrast that with TON, NST, AVB, WCL and RRS, I have been scoring good gains.  BDR will perform eventually.  The market has been ignoring its good announcements.

To temper my risk, I have collected OSH, WBC and ANZ, mostly for stability and dividends.

Currently, I would say that it has often been rewarding for me to be a contrarian... but you have to be a sensible contrarian, ie buying when investors are dumping WITH good announcements.

TON

There is a rumour going around that one of the world's biggest mining house, Glencore, is making an informal approach to SYR, the owner of one of the biggest graphite deposits.  The same lode extends into TON's tenement, adjacent to SYR's.

I paid an average of 6.4c for my parcel and today, it went up by 7c.  SYR went up even higher by more than 20%.  I nearly sold a small parcel of TON at 49.5c but took it off the market soon after.  I will now wait for it to go beyond 10X (a ten-bagger) before making the next move.

This compensates for some other major losses!

PDY

If you look at the details, never buy on any announcement without checking the facts.  A minnow cannot announce deals worth billions without substantiation.  Small investors piled in when the share price spiked but institutions just watched.  Hence, when the board finally admitted that they don't have all that billions IN HAND, the share price collapsed.  The suckers were mostly small investors... but people never learn.  When something is too true to believe, it is unreal.  I wasn't around or I would have sold my parcel....

TON

Last week I put a sell on some TON shares at 49.5C when it was going for 45c.  Then because there were going to be more drilling announcements, so I took down the for sale sign.  I made the right decision...  Today, it had another jump.  And I suspect there will be more coming.  The neigbouring tenement is already more than a ten-bagger so I am expecting TON to do the same.  I am very happy with my usual decisions to top up when good announcements were made... and investors were SELLING!  Few more cents and I will hit another ten-bagger....

This will compensate for some disasters with dishonest management...

AVB

Oddly, even when it announced "exceptional intercepts", the market is ignoring it or selling it down.  This is the best kind of stocks to buy.  But even after buying, the share price can still drift downwards.  As long as you are patient and can withstand the temporary loss, it is often very rewarding.

The last two parcels I bought this year were after good intercepts.  Now the price is starting to run higher...

TON GOR

Good announcements from these stocks this AM so the share prices went up.  It won't be long before I double up on GOR and get a ten-bagger with TON.

Unfortunately, there are many other stocks that promise a lot but neither drilled nor found anything substantial when they explored, e.g TAS.  Some find great stuff but when the final resource figures are calculated, there are strangely nothing much there, e.g. GTE..