My recently purchased gold stock Orvana is up by 63% (+$1,600). Should I sell it or hold it? 7


Do you remember I bought Orvana Minerals Corp (ORV) about a month ago? (Please click the link to see why I bought it)

gold

 

First gold stock of my life- Orvana

Orvana was my first gold stock purchase of my life, does not pay dividend and also a penny stock. That is totally against my investment philosophies right?

orvvv

 

You all know what Warren Buffett said about investing in gold as well.

“It doesn’t do anything but sit there and look at you”

I bought Orvana with my fun, exciting, let’s go crazy once in a while fund and allocated about less than 2% of my total portfolio.

Gold price chart

Well during the month while I have been holding Orvana, Gold commodity spiked up from US$1,080 to US$1,235 at this time. That is 14% increase.
gold

Is the World War III just started?

 

Dow Jones

You can see Dow is down by 8% as of Feb 11 2016.  People are clearly scared now.

dow

8% down for about a month period

 

Orvana stock

What about my Orvana stock? I bought it at $0.11 as you can see.

orv

It is now sitting at $0.18 per share. That’s 63% increase ($1,600)

Is it normal? I don’t think so. This is clearly shows how irrational and outrageous the market is. The irrational behaviour of investors create this kind of nonsense. How crazy is that?

orv

graph

Volatility word is made for this stock.

 

Well… the capital gain was totally unexpected and I just got lucky. It may drop right back down within a week. There were some analyses and due diligence done before I bought it but nothing else matters when the market acts irrationally like this. Isn’t speculating fun?

I bought this company to hold for a long time probably until next big gold price surge and thinking of it as a 10-20 bagger. Haha I can hear you laughing at me… I don’t blame you as I am laughing at myself as well even after I said it. That being said, the short-term gain is so enticing and my short-term greedy devil ???? is trying to seduce me to sell it. I leaning toward holding it because I feel a bit experimental with this one. The most I can lose is $2,540 after all. It may drop right back down but I can see some potentials with this one. So here I am asking a question to you.

Should I sell the stock and crystallize $1,600? or should I hold and wait until my original investment of $2,600 becomes $50,000 eventually? You can leave comments as well for me to learn from you.

Omg my first gold stock Orvana is up by 63% (+$1,600). Should I sell it now or hold?

 

 

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7 thoughts on “My recently purchased gold stock Orvana is up by 63% (+$1,600). Should I sell it or hold it?

  • May

    Congratulations on the nice gain there. I personally avoid junior resource stocks – only invest/speculate with money I am 100% willing to lose. I just find they are a roll of the dice and so vulnerable to manipulation. Not that long ago my husband was coming home from work with his head filled with all these notions from his coworkers who were speculating in oil stocks. I was not a fan, but he just kept hearing stories at work about how much money his coworkers were making. I think he broke down and took a small position in one company – which is way down – and his coworkers don’t talk about oil stocks anymore at lunch. LOL. Sell or hold? hmmmmm… I don’t know but good luck,and hope it pays off for you.

    • monsterid
      Be Smart Rich Post author

      Yup. I am willing to lose 100% on this one although I can see some potentials as well. This is my first junior gold mining stock and I will consider this as a minor hedge to the market in general. Gold isn’t going anywhere. It will be interesting for sure. Thanks for stopping by May.

      Cheers!

      BeSmartRich

  • Kapitalust

    Since:

    a) You’re willing to lose it all on this swing for the fence with fun money.
    b) You’ve defined this amount as fun money that is purely for speculation.
    c) You keep the speculation contained entirely away from your actual portfolio.

    What the hell, go for it.

    Personally, I would sell for the quick gain, but that’s just me. I’d sell that sucker and stock away the gain in the best risk-adjusted investment I can find – something I would hold and collect cash from until the day I died.

    – Found my way here from a comment left on Tawcan’s blog. I think you’re the first Korean-Canadian personal finance/investing blogger I’ve come across – coming from someone with a similar background 😉

    • monsterid
      Be Smart Rich Post author

      Yup. Exactly. I will sleep very well even if I lose it all since it is fun speculating money. Investing in gold stocks especially like this super micro cap can be risky but I think the stock price was almost bottomed out. The company still made good cash flows last several quarters even though resulted in net loss which is actually a good case for me to invest in. I love when companies make good cash flow but showing negative earnings. I think investors generally don’t want to see 0 or negative P/E thus overly punishing it. We will see how this goes. I will keep you posted.

      Yes, I think I am first Korean-Canadian personal finance blogger which makes me awesome. The whole point of my blog is to show regardless what background you have, you can still make things happen with smart life planning.

      Thanks for stopping by!

      BeSmartRich