I hope to repeat my luck with Chalice by finding more combinations of good fundamental potential with an attractive chart. I stress the word luck because until there's a drill result, nobody really knows what is in the ground. Mining companies are "liars standing over a hole in the ground," but many haven't even dug a hole yet.
This is not my only strategy in the mining sector. This is for stocks that get a maximum of 1 percent of assets. I also do not recommend this as a strategy for finding a 10-bagger. This is a lotto stratgy for finding 20 to 50 baggers.
If you are starting out, the best approach is buying higher quality, lower risk stocks with ample upside potential before moving on to lotto plays like Chalice. For finding a 10-bagger, find a potential 5-bagger. Companies that have made a discovery, but are building a mine, might be in the "orphan" phase of their lifecycle. It's early in the bull market and many of these companies are still undervalued. One I like is Rio 2 (RIO.V, RIOFF). It's down about 5 percent since I bought it. If they follow through on production at current prices, they could be a 5-bagger. To get to a 10-bagger it would need to double one more time. Rising gold prices alone could deliver that extra double down the road. That's not a low risk stock, but it is far lower than something like a Chalice.
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