Doubleview Gold
Embracing Volatility for
Life-Changing Return
The hardest aspect of investing in undiscovered junior mining stocks with life-changing potential is patiently waiting for the market to discover them. When the market finally recognizes a company’s potential, volatility suddenly yields life-changing profit. Shareholders need to understand the importance of volatility in delivering life-changing returns, what causes volatility, and what to do when it occurs.
The transition from patience to life-changing profits can be mentally challenging for some shareholders, particularly those who have not experienced it before. The physiological effect of volatility might bias one’s judgment, leading to regret.
During periods of volatility, a rapidly fluctuating share price can encourage people to sell at peaks with the intention of buying back at cheaper levels before a rebound happens. Although this method appears straightforward and potentially lucrative if executed correctly, most people fail. The buy and hold approach is the simplest and most effective way to maximize returns on a company that is expected to rise significantly in price.
If Canadian investors succeed, the Canadian Revenue Agency (CRA) may consider the capital gains as income. If done with shares in a Canadian Tax-Free Savings Account (TFSA), the tax-free benefit of all profits may be lost, resulting in full taxation as income. Due to the lack of established criteria and the reliance on the CRA’s judgment regarding how many trades may put capital gains at risk of being taxed as income, it is advisable to avoid this strategy, which has a high likelihood of failure from the outset. In 2023, I wrote a brief blog post on the subject called “Day Trading in Canada – It is NOT Worth the Risk.” link to article (opens in a new browser)
The volatility associated with substantial sudden drops in share price is sometimes caused by the fact that small retail investments have grown into significant positions. Small retail positions that had no effect on the share price when bought and sold a few years ago now can negatively impact the share price if promptly liquidated into the bid (T$R began profiling Doubleview Gold in 2020 at C$0.10, so C$10,000 investments are now worth ~C$270,000).
The volatility associated with a substantial sudden increase in share price is caused by retail FOMO (Fear Of Missing Out) and larger buyers like institutions, funds, and accredited high-net-worth investors taking larger positions.
When share prices of junior mining companies go parabolic due to significant material news, liquidity produced by periods of increased profit selling, leading the share price to swiftly drop, is usually regarded as buying opportunities for major non-retail investors, resulting in short-lived dips.
Shorting stocks that go parabolic is usually only successful if such moves were completely based on speculation and there eventually was no justification for the higher valuations. This is always the case when a stock goes parabolic for no apparent cause, such as a pump and dump. When a parabolic movement happens following the delivery of important catalysts, the share price is re-rated, and higher valuations are warranted.
Doubleview Gold Catches the Market's Attention & Goes Parabolic
Now that Doubleview Gold is finally doing what I’ve predicted it would do for years, it’s critical to understand volatility and the underlying force driving it, and it serves as a reminder to conduct a comprehensive review of one’s due diligence, even if it’s been done on a continuous basis.
With Doubleview Gold’s recent release of an impressive updated Mineral Resource Estimate, the stock’s share price is shifting from retail buyers to higher net worth accredited investors and institutions. When this occurs, share price drops caused by profit selling are short-lived, and the stock is subjected to a lot of accumulation.
Doubleview Gold’s revised Mineral Resource Estimate triggered a parabolic increase, justifying a significantly higher share price than it was trading at. The big question is: how high is a share price justified? Speculation fuels the volatility of the increase and decrease in share prices.
With the upcoming release of the company’s most important catalyst, the Preliminary Economic Assessment, speculation is at an all-time high following the release of the Mineral Resource Estimate, which provides enough data to perform speculative calculations on the potential Net Present Value (NPV).
The after-tax NPV at an 8% discount rate calculated by a respected individual, known for their thorough due diligence and success in selecting major winners (a former portfolio manager of a US$1+ billion fund that recently publicly thanked me for sparking their interest in Doubleview Gold through my relentless content and it is now his single largest position), indicates that NPV values ranging from US$20 to US$30 per share (fully diluted) are realistically possible! I have done some quick math and agree that it’s possible.
The best way to understand volatility is by studying examples of it. A few years ago, I wrote an article highlighting numerous examples of junior mining companies that had parabolic moves and provided life-changing returns to patient shareholders.
The article titled “Doubleview Gold’s Potential After It Attracts the Market’s Attention – Warning to “FLIPPING” Shareholders” was written precisely in anticipation of what I have been predicting would happen with Doubleview Gold. link to article (opens in a new browser)
Although the majority of the examples illustrating volatility in the article did not maintain their high share prices, speculation was revealed to be incorrect, and the high share prices were unjustified. Successful speculation, as demonstrated in the cases of Great Bear Resources and Filo, sustained their higher prices.
During Great Bear Resources’ move from $0.50 to a buyout price of $29.00, I saw many people express regret for selling too early and missing out on a potentially life-changing profit. Filo Corp. (formerly Filo Mining Corp.) eventually went higher and was purchased for C$33 per share. Filo and Great Bear Resources were both life-changing for some shareholders and a good lesson for others who prematurely sold something that would have been life-changing if they had properly understood what they owned. You can view both the Great Bear Resources stock chart and the Filo stock chart by following the article link provided at the bottom of this page.
Big buyouts are uncommon, but for many shareholders who had the right confidence and invested in the company early enough—such as many Doubleview Gold stockholders—they can be life-changing for those who had strong conviction, understood what they owned, and were patient.
People dream of life-changing opportunities, but most never get to experience them. In retrospect, some people may recall stocks they once owned that could have changed their lives if they hadn’t been sold. To avoid regret and maximize chances of success, especially during periods of intense volatility, knowing what one owns and doing continuous due diligence, including cross-checking everything to better comprehend the likely potential outcomes, is vital. For me, due diligence is an ongoing process, and every new piece of information must be considered to determine whether it has an impact on my investment thesis.
The most effective way for shareholders to maximize returns on a company with significant potential is to be prepared. Understanding what one owns; continuous due diligence, particularly following major news; understanding the likely outcomes; and patience are all crucial.
Embracing volatility correctly with the right stock can help maximize life-changing returns. The difference between embracing it and not embracing it can mean the difference between living with regret over what could have been and making life-changing profit that results in financial freedom and the opportunity to create generational wealth. There’s a reason why the rich get richer: it opens up additional opportunities to make money.
Although I have sounded like a broken record by repeatedly stating my strong belief that Doubleview Gold would be acquired for a substantial amount, which would be life-changing for many, and despite my errors regarding the timing of this event, the most important thing is to be correct. My confidence in my initial investment thesis of a big buyout from a long time ago has never been stronger, and I am convinced that this year will likely prove that I was correct.
Finally, volatility is your friend, and correctly embracing it with the right stock can result in life-changing returns! As a shareholder of Doubleview Gold, I strongly believe embracing the volatility will be result in maximizing life-changing profit.
Link to the article referenced in the article (charts of previous junior mining companies that went parabolic):
Doubleview Gold – Potential After it Attracts the Market’s Attention – Warning to “FLIPPING” Shareholders
Sidebar – Since I trust my due diligence and am confident that my stocks will be life-changing, I do not day trade, trade volatility, swing trade, flip shares, or engage in other forms of short-term trading. I simply accumulate significant positions of undiscovered hidden gems that will most likely be life-changing for me at the lowest price possible. Due to strong conviction, experience, and rigorous due diligence, I use the concentration method (no diversification) and only average down. Since I accumulate significant positions in companies at the lowest price, I rarely average up, even when preliminary evidence suggests that I will be proven correct. My investment method is controversial, as it contradicts all qualified investment advice. After decades of fine-tuning a winning strategy, this method has been the most successful for me.
As a reminder, I am not qualified to provide any advice. Everyone is accountable for their own financial decisions and should obtain expert advice from certified experts in their local areas who are familiar with the junior mining sector.
