Risk management tactics are both traditional and in presenting Nationally over about 15 years, I heard of a number of non-traditional risk management tactics.

Traditional for traders often involves stop loss orders.
Traditional risk management for long term, passive investors is often DCA – Dollar-Cost-Averaging.

There are a couple of market thoughts that fit into this risk management tool I will discuss today.

• One, is the adage, keep your losses limited and let your winners keep winning. In previous comments I have mentioned to try to keep your losses to a $1.00 of loss for each $3.00 targeted gain. In doing this you can lose two of three trades and still be profitable overall with the one winner out of three trades.
• Another “fact” I discovered years ago, not really an adage, but a truism, is more low price stocks appear in the annual “best performers list each year than expensive stocks appear on the best performer list, no matter the category. By Category I mean S&P 500, NASDAQ or NYSE. Of the top ten in each of the previous categories mentioned, 7 or 8 of the best performers started from under $10. That is where my interest in sub-$10 ideas started. If you want winners and at the end of each year, the majority of the market biggest winners, started from under $10. I am also shrinking the pool of ideas I look at in doing this exercise. That makes my job easier. There are more selection factors in profiling for potential 2X to 10X winners but that is not the subject today.

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CMF showing some interesting accumulation going on.

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Africa Oil is controled by the Lundin Group. The Lundin family is a well known family business in Canada. Founded by Adolf Lundin over 50 years ago, the Lundin Group comprises, 11 separate, individually managed public companies focused on the resource sector. Africa Oil is one of their 11 public companies. The Lundin Group itself, is a privately held organization.

AFRICA OIL ANNOUNCES ITS INTENTION TO LAUNCH A SHARE BUYBACK PROGRAM UNDER A NORMAL COURSE ISSUER BID
8:00 PM ET 8/10/22 | Dow Jones

VANCOUVER, BC, Aug. 10, 2022 /CNW/ – (TSX: AOI) (Nasdaq-Stockholm: AOI) — Africa Oil Corp. (“Africa Oil”, “AOC” or the “Company”) is pleased to announce that it has Board approval to submit an application to launch  its first share buyback program under a Normal Course Issuer Bid (“NCIB”) scheme. The Company’s intention is to repurchase up to ten percent of its public float, the maximum permitted over a twelve month period under Canadian and Swedish securities law, subject to customary approvals. View PDF Version

Once approved, the buyback program would expand on the Company’s existing shareholder capital returns program with an annual base dividend of $0.05 per share, distributed in two semi-annual payments. A further update on the process and timing, including a launch press release, will be issued upon regulatory approval and once the Board has formally resolved to launch the NCIB. Link to full story Continue reading →

Changes in perspective and reality influencing Markets:

• Deflation to Inflation Investing
• War Time Investing from Peace Time Investing
• A shift from Globalism to Nationalism to Tribalism
• Change in focus involving Past – Present – Future

Investing decisions change for many reasons. “The Market” direction of money flow changes based on Perceptions – real or perceived. Right now, we have to recognize the hard realities in life because it will impact our market returns until they change again. Unfortunately changes in perception have no defined life cycles. Continue reading →

• Dow Holdings – a very favorable chart pattern, a 6 P/E and 5% dividend.
• Soluna – Buy Under $2.75, No news for a while and potential for Tax loss selling
• Frontline – A Ten under $10 holding, is being sold.

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We are making a number of changes to the LOTM Ten Under $10 list today. We see opportunities and yet want to limit the number of positions held on the list in order to keep a focus. That does not necessarily mean we are negative on any of the positions on the list but rather we see some combination of timely & higher potential in other companies than the company we are exiting.

Stocks we are adding to the LOTM: Ten under $10

As is our discipline in this public example, we use the same dollar amount – $1,000 – for each position.

NOTE: a better way for scalability of an active portfolio is to limit the number of positions (companies held rather than number of units in each position) and keep a % of the account as your measure for position size. EXAMPLE: 20 positions at 5% in each position. Then work into over-weight positions and under-weight position as you make determinations on the degree of commitment you want to each company. Staying limited to a set number of units of commitment, forces a certain discipline on Continue reading →

Vizsla Silver (VZLA)* $1.15

In the coming weeks and months, you will hear more and more about the world class discovery that Vizsla Silver is uncovering 45 minutes east of Continue reading →

• Soluna’s News reminded me of two other companies that run short of cash
• Calumet Blows Expectations Away
• StoneCo Down 21% on Meaningless Negative Headline News. Opportunity.
• S&P 500 failed at 200-day MA. End of the Bear Market Rally?

Soluna (SLNH)* $3.35

Soluna is my biggest position. The news about the 10-Q qualification as a going concern surprised and bothered me. For all the transparency of the monthly updates there was no disclosure about cash flow and finances. I believe Soluna Continue reading →