AUY Trade #91

$AUY Trade #91

I remember seeing Jim Cramer, on the television show Mad Money, yelling "YAMANA!!" at the TV during the "lightning round". That's when I began trading YAMANA Gold $AUY.

$AUY, trade #91, isn't over yet, I have 10 boats sailing, but I've waited and waited for this stock to return to it's "glory hole" (those of you who have seen the show "Gold Rush" will understand). I've been sailing these 10 $AUY boats since September 2014 (yep, those boats should have been called back in a long time ago but I wasn't using a STOP-LOSS at the time).

I thought sailing a gold mining boat would be a hedge if there was an overall pullback in the stock market. I guess I was right as $AUY is now over $5 per share after hitting a low of $1.78 last summer. That is a heck of a return, but... timing is everything and I started sailing it way to early!

Here are three takeaways from $AUY Trade #91:
  • First, someday I'll devote a post to debt. In short, I hate suffocating debt and AUY had A LOT OF IT when I started sailing it. Last year they started selling assets, reducing debt and have been talking a lot about improving shareholder returns (it's about time). As a result, $AUY has tripled in price. Why did I sail them when they had so much debt?
  • Second, I don't care to own gold and I don't value gold so why did I keep investing in gold? I understand the hedging value but if you don't like something, don't own it.
  • Third, after 6 years of successfully trading this stock (2008-2014) I got complacent and trusted the stock (I didn't think I needed to use a STOP-LOSS) when it started to dive. I knew better and I should never blindly trust a stock. I also floated additional boats too soon together instead of creating distance between sailings. Example: $AUY I departed on 09/04/14 at $7.94 and $AUY II departed on the same day at $7.89. I should have staggered my departures better. 
$AUY Boat Logs:
  • Sailing $ Rank: 102 out of 105 trades
  • First purchase: August 14, 2008 @ $10.229
  • Last purchase: March 9, 2020 @ $3.99
Fair winds and following seas!

Trading Tide Levels (at the time of the post):
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This is for informational purposes only and the information provided does not encompass all possible or probable outcomes and nothing posted here is an indication of future results. Nothing in this blog is a guarantee or promise of future investment returns and investing in stocks or bonds carries risks including losing your entire investment. I do not recommend, advocate or endorse any third-party links, resources or advertisements of any kind. Any investment decisions are recommended to be in conjunction with a Certified Financial Planner, a comprehensive and personal financial plan and all other components that make up your own financial situation.

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