Forum Topics MEK MEK Should I stay or should I go

Pinned straw:

Added 10 months ago

Minimal company insight on this post. More so just to get my thoughts down on paper.

Recent SP increase on MEK has now pushed my IRL returns above 100% and SW position around 90%.

Initial thesis was to hold through to production and commencement of revenue to then reassess however the SP increase has been well ahead of expectation’s.

Actions for consideration now are:

  1. Do nothing. Continue with the thesis and accept there will likely be some ups and downs.
  2. Sell down profits for reinvestment and maintain a smaller allocation 
  3. Sell it all and move on. Perhaps returning once they are in the swing of mining.


Current headspace for this weekends thinking is:

Point 1 is being mostly driven by the punting / too the moon headspace.

Point 2 is likely the option that provides the best outcome as both up and down sides are rescued.

Point 3 is sitting there based on really wondering how much higher can this price go. They could loose some of the gold SP frothiness and still be a well run company just at a lower price point.

TBH the more I write this the more now I’m even looking at  Point 3 as the better long term pick.

Enjoy your weekend SM team while I continue to think on this.

Bear77
Added 10 months ago

Sure is a nice problem to have @thetjs - I've recently gone with option 2 here on SM, and option 3 in my real money portfolio, FWIW.

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thetjs
Added 10 months ago

Appreciate the input @Bear77 and I think that’s what I will end up doing.

The more I sit back and pat myself on the back about the SP return the more I think of the, often, blind enthusiasm that went with Lithium and some of those companies and people’s belief that the SP would just run and run.

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Tom73
Added 10 months ago

Good process @thetjs , just writing it out helps with the decision and getting your thoughts straight plus being honest with yourself - kinda the point of Strawman!

Accept that even if you chose the best of those options, Mr Market will always say at some point you could have made a better decision or timed it better.

I have no view on the company, so no help on what to do, just calling out your going about the decision in a smart way.

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thetjs
Added 10 months ago

Thanks @Tom73 much appreciated.

Agreed on the value of strawman. It’s amazing how quickly your thoughts change once you try to articulate the why of doing something beyond a gut feel and realise that your conviction may not be that clear cut.

Would 100% recommend it to anyone in the community who are trying to sort there thoughts out. Worth it every time.

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BkrDzn
Added 9 months ago

I bought all mine under 4c. Sold some around 12c. Did that in both straw and IRL.

Its hard to not take profits on such a big run. I note that since I got in, the valuation has at least doubled based on my numbers as old price is up a lot and the mine plan delivers more ounces. I retain a good amount still as momentum in the stock is strong and on my val, still has a double ahead. In my view, the risk/return is still good.

As for your lithium comp, many people though the SPs would run and run somehow in the face of a collapse in the commodity price. That commodity seems to attract a special bunch of people that never learn what a cycle is. To the contrary, the gold price is melting up still. It may be overbought and due a correction a minimum but as long as it melt ups, the gold stocks will follow suit.

None of the above will probably help but just do what your gut is telling you.

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thetjs
Added 9 months ago

Cheers @BkrDzn .

For those who have been following along. Where I’ve landed is to retain the current position and lock in a sell level (around 9.5/10 cents) that lets me walk away if the SP starts to dive and still take decent profits.

Part of this approach is a real struggle to identify where else to put the profits.

At this point none of the rest of my portfolio is setting at lower SP levels worth a top up and I havn’t locked in a new company to invest in with sufficient conviction to buy now.

So for now. I’ll continue to hold while the final reporting season filings occur. See how that impacts the portfolio and any prospective options and then make a decision from there.

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