Recent Sell – New Gold Inc

NGD

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.

2 Recent Buys – CU, NGD

Some quick updates for the recent moves in my portfolio. I made a few purchases in January that I never got around to documenting, so here it is.

I made the following purchases in January 2017

  • 100 shares of Canadian Utilities¬†Ltd (CU.TO) + 1 STO covered call
  • 1,000 shares of New Gold Inc (NGD.TO) *New position*
  • + New portfolio for my daughter – details coming soon in a separate post

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