Monday, August 29, 2011

Bullion Baron's Fantasy Portfolio - Day 1

Yesterday I mentioned I would be starting a 'fantasy portfolio' and that I would be taking immediate positions in the portfolio with an outlook to increase those positions should we see a breakout in the Gold stocks (see this post).

Many stocks I have mentioned on this blog have climbed 100% or in some cases much more after posting about them (e.g. WCN, MNM, TBR, AYN, SVL, CCU and others), although some have then come back to earth following their dramatic rise. The portfolio that I publish will be an opportunity to (hopefully) showcase the sorts of gains that are possible in this precious metals bull market.

Disclaimer: A reminder that I am not responsible for any personal decisions you make (these trades should not be considered as advice in any form) . This portfolio won't necessarily be a reflection of my personal holdings. It's likely that I will have positions already in the stocks that are bought/sold in the portfolio (but may not). The stocks that I invest in/trade are usually risky & often illiquid juniors which can drop dramatically in no time at all, buy them at your own risk.

Unfortunately having a day job means that intraday posts to the blog are unlikely for updates to the portfolio, but when I can any buys/sells will be tweeted through my Twitter account and then updated in the portfolio and posted to the blog after hours. Where I don't get the chance to tweet a specific price point during the course of trade I may opt to buy/sell based on the VWAP for the day (using Stockness Monater).

Keep in mind this is an Australian based blog and trades will reflect this with all stocks being ASX listed. I may also choose to buy/sell other securities such as QAU (exposure to US price of Gold, AUD hedged), PMGOLD/GOLD (reflects AUD price of Gold) & USD (tracks change in United States Dollar relative to Australian Dollar).

My first trades were tweeted earlier this morning. The following stocks (and amounts) were added to the portfolio:

WCN @ 12c - 20,000 Shares ($2400)
CGT @ 5.7c - 90,000 Shares ($5130)
MSR @ 18.5c - 15,000 Shares ($2775)
SLR @ 2.56 - 3,900 Shares ($9984)
TRY @ 4.45 - 2200 Shares ($9790)

$30,079 used from a total $100,000 available.

I will work on creating a small spreadsheet to update with the trades making it a bit easier to track the transactions that I make.

I won't always be able to provide full rationalisation for the decisions made, though will do my best to when I can. Most of the stocks bought today have been previously covered on the blog (so fundamental reasoning for their purchase should be obvious). WCN & MSR should both soon have drilling results due soon from their respective projects and MSR is also waiting on a mining license and resource upgrade (so may look to sell some of both holdings into news).

CGT is about to go through a share consolidation, so don't let it boggle your mind if it turns into an instant 10-bagger as this is just the consolidation and I will update my purchase to reflect it (obviously)!

Any questions feel free to drop a comment below or an email to bullionbaron at gmail dot com and if you want to keep ensure you don't miss an update then I would recommend subscribing to the blog by email:

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BB.

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