The best investment I’ve made in the last year was perhaps the dumbest, least informed purchase I’ve made in my life. Golden Secret.
Golden Secret Ventures (GGS.V) was at $0.20 when someone tweeted at me that he’d been watching this long forgotten shell suddenly jack up over the previous few days, all the way from $0.05. No news. No buzz. But it was moving and hard, and in secret.
I started to dig. I found nothing. All the usual guys I’d talk to for an inside scoop shook their heads with genuine bemusement.
“I have no idea what this is,” said one broker, adding, “But it’s going nicely.”
So I bought some. I bought way more than I should have risked on something absolutely blind, but it was a great deal from day one.
When billionaire philanthropist Frank Giustra was revealed as a stakeholder, fresh off his killing on Lithium-X (LIX.V), the company launched a $600k financing that blew out to a $2.5m financing in just a few days.
And the share price blew past that financing level with ease. In fact, it blew 30% past it.
Today, just weeks after that mysterious first jump, it hit $0.53, with a 17% jump on the day.
I still don’t know what the hell it’s going to actually do as a business. I’ve talked to people close to The Juice, and they say there’s no hard plan right now, but the treasury they’re sitting on is pretty darn sweet. Others say it’s going to be a lithium play. Others still say the name of the company is no coincidence.
Heck, this thing is so secret, you can’t even find it on the Stockhouse website unless you look under the name ‘Lakewood Mining‘, but that’s less by design than it is the Stockhouse website being held together with twine, bubble gum, and Tim Horton’s cups.
So why would I be in the thing if I don’t know what it is?
In a nutshell, it’s moving hard enough that it causes potential investors to think ‘it’s going to keep moving so I should invest.’ That investment, in turn, causes the stock to keep moving.
Pump and dumpers rely on this thinking from investors, shedding their cheap paper as Johnny Lunchpail buys into the lift.
But Golden Secret isn’t a pump. First, Frank Giustra doesn’t do four-month promo deals. The guy runs in circles that would close up hard if he started playing that short sighted game for less cash than he probably spends on dinner. Second, they’ve just raised quick cash, which can turn into a lot more cash if they find something nice to jump into. Third, the stock is up hard every day. It shows no sign of slowing. It’s the definition of a runaway train.
In short, I’m not betting on the company, or the project, or whatever plans may show up in the future. I’m betting that other people are seeing that chart and jumping all over it.
At least for a while.
Lithium-X (LIX.V) is a beast right now, and shows little sign of stopping. From a $10m market cap about eighteen minutes ago to a $110m market cap at the close of trading, the company is doing a fat $7m raise and will be armed to the teeth to go out and actually do something worth its current value. But some are looking at it now as being value-removed. Sure, it might keep going up, but it’ll need to hit $4+ to get another double, whereas a new lithium play sitting around $0.20, or $0.40, or $0.53, only needs to jump to a buck.
I’m hearing about a lot of them. Everything once graphite is now lithium. To the south of LIX sits one such property, owned by a company called Resolve Ventures (RSV.V). 23m shares out. Sub-$10m cap. Up 28% today with a financing in play.
I think I’m going to jump on. There are a lot of potential lithium entry points, but I like the engine roar I’m hearing on this one, and the deal they’ve made to option their stake in the LIX-neighbouring property is dirt cheap.
It may well be my first lithium deal. Then again, maybe that was GGS – I literally have no idea.
FULL DISCLOSURE: I own GGS stock, as mentioned. At a future time I may well pick up RSV as well.