By Malcolm Stacey | Thursday 16 February 2017
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Trimmers. Though I usually research stocks very carefully, I am one of those idiots that, once in a blue moon, invests in a company I know little about. You get a gut feeling sometimes and somehow don’t want to spoil it by too detailed an examination. One such share for me is Sula (SULA), the gold and iron miner. I saw a glowing piece on this magnificent website not so long back on this stock.
The originator of this tip, Andrew Monk, for whom Uncle Tom has professional respect, said it was not beyond the realms of possibility that a punt into Sula at that stage could result in a ten-bagger down the road. Well, that tip has already turned into a two bagger for me, so there may have been something in it.
Sula has been in the mining news this week because two of its diamond drills have arrived in port in Sierra Leone ready for action. The news sent the share price spinning upwards.
It seems a bit odd because this does not necessarily mean a massive improvement in the business, but I was tempted to buy more shares, not because of the machine news, but simply because the price keeps rising. Never turn down a moving bandwagon is one of my more impulsive mottoes.
However, I will not buy any more shares for the time being, as I have been burned by too many small miners in the past.
What I think I’m trying to say in this modest piece, gang, is that there is sometimes a case for buying shares on somebody else’s say-so, without using up critical time to make all the checks yourself. As long as you already respect that source and do your own research when you can. You should also keep your finger over the sell button - just in case.
This is not a recommendation to buy or sell Sula. I’m just using it as an illustration here.
And now it’s time to visit the Punter’s Return.
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