SLR 1.97% $1.82 silver lake resources limited

I finally bought in to this stock at 42.5c following many months...

  1. 787 Posts.
    lightbulb Created with Sketch. 147
    I finally bought in to this stock at 42.5c following many months of a buy rating by FatProphets. After a long period of bouncing off 42c it then went into decline and I increased my holding by 50% when it reached 35c. That is now history and you all know about that.
    So, today it gets to 32.5c. Do I top up, or wait and see where things go? After all that is a 19% decrease on my overall cost. FP retain their buy rating as at 8 November.
    I am a contrarian investor by inclination and so not afraid to buy on negative sentiment and then wait for a change in sentiment over a longer period of time - provided the fundamentals show value at the time I buy.
    I think SLR is OK for me. They are debt free and even if their ASIC is high, there is still money to be made from their gold production. Further increase in production is needed nevertheless to justify the present high PE and nil div.
    Must admit, I was disappointed when they lost Break of Day which seemed promising. This happened before I bought in to SLR and so I thought that a punt on MGV was worthwhile. Not disappointed on that so far.
    Do I buy more SLR at 32.5c or lower? I guess that depends on how much lower. Given my current exposure, I will wait and see. So many gold stocks to choose from (and I have multiple) but the continuing decline in SLR without any corresponding decrease in resources, significant gold price change or otherwise negative prospects mean that I will continue to maintain a close watch.
 
watchlist Created with Sketch. Add SLR (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.