TIB - An Investors Journal #645 - Rare Earths, Base Metals, Silver Mining, Europe Oil, ASX Stocks, Crypto (BTC, ETH, XRP)

in LeoFinancelast year

Stocks are bouncing around a bit as yields creep up again. Stayed away from markets other than working on a few Australian stocks. I have under-invested in the ASX over the years - by choice. Maybe time to address that.

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Portfolio News

In a week where S&P 500 rose 1.97% and Europe rose 2.47%, my pension portfolio rose 2.36% between the two. Major contributors are De Grey Mining (DEG.AX), Japan, Volkswagen (VOW), Eramet (ERA.PA) and Adyen (ADYEN.AS) in Europe and solar stocks in US, especially First Solar (FSLR)

Big movers of the week were First Solar (FSLR) (+29.6%), Kogan.com (KGN.AX) (+23.7%), ERAMET (ERA.PA) (+20.6%), Nordic American Tankers (NAT) (+19.5%), Ramelius Resources (RMS.AX) (+18.9%), 3D Systems Corporation (DDD) (+14%), Stuhini Exploration (STU.V) (+13.6%), Sunrun (RUN) (+13.3%), JinkoSolar Holding (JKS) (13.3%), Stem, Inc. (STEM) (+12.4%), Volkswagen (VOW.DE) (+11.7%), De Grey Mining (DEG.AX) (+11.6%), Hecla Mining (HL) (+11.2%), The Mosaic Company (MOS) (+10.9%), Ford Motor (F) (+10.1%)

A mixed bag of movers with 3 solar stocks, 4 gold/silver mining stocks, and a few stepping up off earnings reports. Good to see Australian retailer Kogan in the list - been a struggler and still losing in the Sharesies portfolio. I am keen to exit it when it hits breakeven

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Market is all over the place on inflation - is is that bad? will the Fed over do it? Makes for bouncy days

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Solar stocks all took a step up when yield on 10 year dipped back below 4% and with solid results from First Solar (FSLR). Housing related stuff likes it when yields ease off a bit

https://finance.yahoo.com/m/f0d110e1-b54e-376c-8700-b6174150f9be/why-first-solar-stock-was-a.html

Crypto booms

Saw this tweet on March 3

Information leaked that SEC had issued Wells Notices to several Defi exchanges - at least 30 was the information. Of note is looking at the charts of price action - prices all dropped at midnight Thursday evening (March 2). Now the SEC works office hours - that tells me the information was leaked before the notices were delivered

Bitcoin price edged higher and then fell over on the leak with a peak to trough range of 8% and a 5% drop on the week

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Ethereum chart looks the same with a peak to trough range just below 8% and also a 5% drop for the week

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One more chart to show the Wells drop - Ripple (XRP) which I bought earlier in the week.

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Not all doom amongst my holdings with EOS running up 20% and ending 11% higher for the week

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Bought

Read an Australian research report pointing out opportunities in metals likely to be critical in the transition to zero emissions. Chose to invest in 2 only and skipped Vulcan Energy Resources Limited (VUL.AX), lithium explorer operating in Germany - I am wary of the high cost structures of European business compared with investing in the main competitor (SQM)

VHM Limited (VHM.AX): Australian Rare Earths. Large rare earth reserves in North West Victoria

Azure Minerals Limited (AZS.AX): Australian Base Metals. Principally a nickel explorer with lithium tenements on its nickel property near Karratha, Western Australia.

Coeur Mining (CDE): Silver Mining. Assigned early on 2nd tranche of naked put that I had kicked down the road. Breakeven taking into account all the sold puts is $3.48 which is not too far away from closing price of $3.16 (Mar 1). Covered call writing will cover that gap in good time and with rising yields, a silver hedge is never going to be out of place.

Sold

Cabot Gas was Northern Petroleum (CAB.L): Europe Oil. Delisted following insolvency. 100% loss since January/March 2017. Investing in Europe oil has been a soft arena outside of Shell and BP.

ASX Portfolio

Funded the Sharesies portfolio with the next A$2,000 - last month I was topping up to a maximum of $400 per holding. Portfolio situation is 53 stocks held of which 21 are currently profitable and 7 are flagging exit. Of those 7, 3 are gold miners and 2 are in the beleaguered buy now pay later (BNPL) segment of payments. Going to leave these 5 - gold for hedging and wait for over-reaction to regulatory risk in BNPL to work through. Of the remaining 2, will wait to collect dividend on Resimac and going to ride out on Appen with new CEO only 3 months in the role.

A key principle in investing for the long haul is to let the winners run. From this month I will begin to scale in to the leaders - every stock that has only the initial investments of $200, which does not have a sell order in place (close to 52 week high) and is doing better than 10% up will be scaled in.

A quick reminder on the screens. 3 fundamentals, price to book, price to sales and price earnings and 3 technicals, one month high 20EMA above 50EMA and below 200EMA = looking for weak stocks breaking upwards

New Buys

Australian Clinical Labs Limited (ACL.AX): Healthcare. Dividend yield 13.11% - ex dividend date March 27, 2023

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Classic break up chart with momentum continuing past earnings and trade date. Price will dip on the ex dividend date by the amount of the dividend

Pact Group Holdings Ltd (PGH.AX): Packaging. Dividend yield 3.97%

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Similar chart with good pop after earnings.

Top Ups

DGL Group Ltd (DGL.AX): Waste Management
Aussie Broadband Ltd (ABB.AX): Telecom.

Scale In
Rio Tinto Limited (RIO.AX): Mining.
BlueScope Steel Limited (BSL.AX): Steel.
GUD Holdings Limited (GUD.AX): Automotive Parts
Ramelius Resources Limited (RMS.AX): Gold Mining.
Boral Limited (BLD.AX): Building Products.
Inghams Group Ltd (ING.AX): Food Products.

Cryptocurrency

Last month I started topping up crypto holdings with the proceeds of my house sale. I did the same thing this month deploying A$10k, 50% Bitcoin

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and 25% Ether.

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I chose to put the other 25% to a different top 10 coin - and chose that based on relative performance from the December lows - pick the laggard. Must say I was tempted to buy pick the leader - Litecoin. That will come and I do have some any

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Chose not to buy through Binance and used Australian exchange Coinjar. Thinking it is time to start using a cold storage wallet to get away from exchange risk.

Income Trades

Quiet week for income trades with only two covered calls written (Europe 2) across the portfolios. In uncertain markets I am not chasing premium - will rather hold onto the stock

Exercise risk on spreads and sold puts is within the cash available. The spread stocks that are at risk of exercise are stocks that I am happy to own - though there might be some kicked down the road as we get closer to expiry - example American Waterworks (AWK) sold put.

Resources

Cautions: This is not financial advice. You need to consider your own financial position and take your own advice before you follow any of my ideas

Images: I own the rights to use and edit the Buy Sell image. News headlines come from Google Search. All other images are created using my various trading and charting platforms. They are all my own work

Tickers: I monitor my portfolios using Yahoo Finance. The ticker symbols used are Yahoo Finance tickers. Crypto tickers come from TradingView

Charts: http://mymark.mx/TradingView - this is a free charting package. I have a Pro subscription to get access to real time forex prices

Investing: Interactive Brokers provides comprehensive global markets coverage with very competitive commissions. Open an account to earn up to USD 1,000 in IBKR stock. https://mclnks.com/ibkr

Crypto Trading: Binance offers a wide range of coins to trade, tight spreads and low fees if you use BNB to pay https://mymark.mx/Binance

Kucoin offers a wider range of altcoins than many of the other exchanges. I do like to diversify my holdings in case an exchange gets knocked over. Grab 15% discount on your trades when you open an account on this link https://mclnks.com/kucoin15

Tracking: Keeping track of your crypto trades is a whole lot easier with CoinTracking.info. Get 10% off all your account upgrades https://mymark.mx/CoinTracking

Aus/NZ Investing Sharesies provides low cost, fractional share investing for Australian and New Zealand residents covering stocks in those countries and US. Start investing with as little as $20 https://mclnks.com/shares

Australian Crypto Buy and sell crypto with Australian Dollars at Coinjar https://mclnks.com/coinjar

February 27 - March 3, 2023

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