“Riding the Wave” With a Canadian Junior Miner

From the Desk of Ian Culley @IanCulley

Random discovery, buying cheap, and riding the wave…

According to long-time gold mining investor Tommy Humphreys, these are three ways to score outsized returns in the junior mining space.

I’ll admit the first two strategies are foreign to me. But I can get behind riding a wave, especially when it jibes with a trend-following mentality.

Check out Tommy’s favorite gold mining stock, or “story,” as he puts it…

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Aris Mining $ARMN, a $500M miner based out of Vancouver, British Columbia:

It’s a great-looking chart: price breaking out of a multi-month base, pullback finding support at former resistance, and relative strength suggesting further outperformance in the coming months.

But Tommy didn’t mention any of those bullish data points.

Instead, he shared the fundamental story: Aris Mining is a profitable business run by serial outperformers (common themes valued by legendary investor Rick Rule).

So when a reader emailed me over the weekend asking for profit targets in ARMN, I found it difficult to nail down a reasonable objective (shout-out to Robert).

ARMN is a long-term play on gold’s secular bull run, not a swing trade.

While I outline initial and secondary objectives for more than twenty names in today’s Gold Rush video, I’m more preoccupied with managing risk and letting winners run than picking up quick profits.

Random discovery sounds worse than flipping a coin. Buying cheap goes against my philosophy of buying high and selling higher.

But riding gold’s secular trend with a junior miner like ARMN makes sense as long as it holds above 3.50.

If you haven’t watched JC’s interview with Tommy Humphreys yet, give it a watch for all the details on his analysis of ARMN and the inside scoop on the mining business!

–Ian

Click here to watch this week’s Gold Rush Video: