April Quick Grab: Not so Golden

What’s up People! I bet you’ve been wondering who made the Quick Grab Pick for the month of April. Before getting into my pick for last month and why I chose it, please let me reiterate (although it should be very obvious), this trading method should not be used as a replacement or guideline for retirement savings. I am not a even close to being an expert on trading, this is all about learning on the go. Quick Grabs are a way for me (and you if you’de like) to learn the ropes of trading stocks using real money but doing so in a way that fits within our current budget. I do have an employer matched 401k plan that I currently contribute to but hey, I don’t really plan on being an employee anywhere near what is considered to be normal retirement age. So I see this as a step towards developing the skills to utilize trading as an income stream. I’m taking baby steps in hopes of becoming more knowledgeable and in turn becoming more profitable. Who Knows, maybe it will turn out to be a major source of income for us in the future. As a matter of fact, I’m going to drop the “who knows” kind of thinking and say, with true belief and expectation, that these small steps are going to definitely lead to much bigger returns. It might not be tomorrow, but with consistency and thoughtful management it will happen. The important thing is I’ve gotten started so I’m that much more closer. Now, let’s get right to it. And I’m going to keep it short and sweet.

On April 5, 2017 I purchased 20 shares of Yamana Gold (AUY) stock at $2.80 per share. Yamana Gold is a Canadian based gold and silver producer that began operating in 2003. They have mines operating in various places between North and South America. Yamana Gold has a few qualities that stood out in my mind.

  • They have cash that far exceeds their debt
  • They suffered a drop following a not so good 2016 4Q report.
  • In July of 2016 the stock was close to six dollars and I believe it will get back to that number in the coming months.
  • They will have an additional mine starting production in early 2018
  • I think the current political environment is going to spark the gold market and I believe we are going to see a rise in Gold stocks like Yamana Gold to go along with it.

This stock may be more of a long term pick to many, but for me it’s just 20 shares that I will sell not too long after the stock gets back to that six dollar price. This is the first basic materials stock I’ve purchased and making this little purchase has in a way caused me to really take a closer look at gold and silver and how they perform in the world of trade. For those of you that may be reading this and have more insight. Feel free to comment as to why my logic is or isn’t sound and how I should change my thinking to make more quality decisions in the future. Thank’s for checking out April’s Quick Grab and I’m already on the prowl looking for May’s Quick Grab. Any suggestions?

Til Next Time… DaddyBe

Oh and I have to let you know, currently Yamana Gold has dropped a little lower than the price I paid for it. But hopefully a strong 1Q report will give it the boost it needs. If not, I may be holding on to my little 20 shares a little longer than I plan to.

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