Today, I increased my exposure to gold miner and a pipe company.
McEwen Mining dropped almost 20% in the past few weeks. Given that the CEO still owns 25% of firm and is not selling, plus considering that gold is still underallocated by institutional investors, I bought more shares. I bought only a bit more for position sizing. Also, I used Motif Blue to save on commission.
This is a kind of trades that I like. The downside is quite limited in the long term. There is no debt and gold will be around and the CEO has skin the game. A nice time arbitrage. If McEwen Mining falls more, I will probably buy more.
OmegaFlex produces flexible pipes. It has no debt and its revenues and net income have been growing steadily. Water pipe replacement alone will require between $650 billion and $1 trillion. Now if we consider gas pipelines and other pipelines, the market will be larger. So a small growing company in a large market seems very good.
Another trade that I like. Not much thinking required because the odds are very favorable. Some may argue that all good news is priced in. However, this is small stock that does not get much attention so that is not highly likely. Also, I am buying on a small pullback 😀
I will update my positions 😀