Dishonest CEOs

Whenever I attend an investor seminar where the CEO of a company is presenting, you would think you would be a fool not to buy it.  In a bull market, most stocks are rising so even the cleaner or taxi driver can give you the 'correct' tip.  After attending to so many seminars, you learn to recognize which CEO is not telling the truth.  Unfortunately, hind sight occurs after a loss.  But what is deceiving is a lying CEO which is no better than a used car salesman.

Many don't tell you about the debt level and level of cash at hand.
Many investors don't realize that no forthcoming production means no profit even with world class deposits uncovered.
Many don't acknowledge that potential find often end up in nothing even when there is oil seeping out of the ground or a naturally occurring oil slick is present.
Many won't reveal the obstacles especially when dealing with developing nations or the greenies.

You also need a geologist degree to understand what the drilling results mean. 

Finally, you want to listen to negative sentiment/statement.  Once I invested in a uranium exploring company.  Someone said that none will be produced because that Flinders Range site is too beautiful...  Luckily I dumped it early but not at its peak.  Subsequent to my selling, the management was unprincipled too; they simply dumped at the site and was fined.

MEO

When I read that it has high potential for successful oil discovery in Cuba, I bought shares in MEO at market price.  Of course, after that hype, the price fell to earth and I was left nursing a loss.

I put a higher sell immediately in case someone wants the shares badly.  I am still nursing a loss but I have just noticed a write-up in the AFR so tomorrow, unless price of oil or Wall St falls badly, the share price will almost certainly go up.

Irrational Fear

When the referendum on Brexit was taking place, when it looked like it will be rejected, the share price went up but as post-voting polling started to show Brexit is clearly the case, the share markets around the world went plunging down out of fear.

This fear was irrational.  Suddenly the next day, the world is not going to freeze because of the Brits' choice.  I took the risk but because I was working and because I have to conserve cash now as I am getting old, I only bought small parcels of bank shares.  It only took a day for those fund managers (well paid bastards) to realize that the selling was stupid.

Those bank shares have appreciated nicely since I topped up, far more than the interest they pay over a year.  When bank shares plunge over multiple sessions, they are almost always worth topping up.  Irrational fear is my friend.

TAS

If you read the announcement below, then for every 1c of EDE, TAS is worth 1.5c approximately.  An announcement was made by TAS on March 2016 when EDE was valued at 10c by the market.  TAS was worth 15c each, based solely on its holding in EDE.  I subsequently investigated and found that TAS has no debt.

Today EDE is around 20c and TAS is only around 13c to 16c over the last few days.  I topped up 3 parcels at 13, 14c and 15.5c.

I hope my basic arithmetic knowledge will serve me well... because with simple calculation, TAS should be worth around 30c if it liquidates and sell their holding in the market at current EDE price.


 

NST

When you invest in the resource sectors, it is nearly impossible to recognize who are the cowboys until the share price tanks some months/years later. At many events where the CEO had presented or when you looked at the company's Investors Presentation, you would think you would be a fool not to invest in it.

NST has been making great presentations, consistently.  One outstanding AND consistent trait in the past is the management buying out "unproductive" or neglected mines, often owned by big gold miners.  Its main goldmine was virtually dumped but after a bit more exploration, the mine became more productive with bigger resources.

I have topped up with good news in the past when the market didn't want to know about
NST in the beginning.  Today, it has gone up by more than 500% so it has been a good compensation for the massive losses in those cowboy stocks I used to buy.  In addition, NST pays a decent dividend, too!

PEP FLN

Two of my biggest 2016 purchases (other than SPPs) were FLN and PEP.   As happens frequently, it went into a doldrum for a few months, and then for a strange reason beyond my understanding, both turned up at around the same time.  These are online-based companies with increasing profit so I bought into them, not heeding Warren Buffett's advice that it is important to understand their business.  I only understand profit...