This will be another quick update on a sale in my portfolio.
Last week I shared opening a new position in New Gold Inc (NGD.TO). I saw an opportunity after the stock price was down 35% after management announced delays in Rainy River project and shortfall in liquidity. The stock was over-punished and I figured it was due for a quick bounce. Right after I bought, New Gold stock bounced 10% which was good but I wanted to see how management was going to navigate going forward.
Yesterday, it was announced that the company was selling its 4% gold stream in the El Morro project to Goldcorp (GG) for $65M. This is a much better deal for Goldcorp than New Gold. However, it seems that investors in NGD like the news (uncertainty is a bigger evil than bad deals, it seems) and the stock price popped further. I decided to cash out and take my profits after holding the stock for just a few days.
To summarize: I sold 1,000 shares and closed my position in New Gold Inc (NGD.TO) @ C$3.95.
Total profit: $511 (14.86%)
Holding period: 8 days
Full disclosure: Our full list of holdings is available here.
Wow nice profit 🙂
Thanks Matthew. It was too lucrative to pass up…was worth the risk for the reward presented 🙂
R2R
NICE quick profit! Gold has been up quite a bit.
Thanks TDM. It didnt take long for the smackdown, which came today. Looking for a pullback to buy more
R2R
That’s how it’s done 🙂 Fast way to make 15%. Nice in and out. Thanks for sharing.
Haha it wasnt without risk….but when the market gives you such opportunities, you gotta take em
R2R
Awesome trade! Nice job ringing the register. That’s a great win 🙂
Thanks Jay. Cant say no to these quick profits. Gotta swing at those fat pitches
R2R
excellent return you made there!
These are the kind of trades Ive been keeping an eye on…quick moves. Who said volatility is bad 🙂
R2R