Weekly Update

New Changes

* From daily update change to weekly update or as and when I feel that I have something interesting to share.

* Updated my stock allocation to include US & SET as of 16th May.

US Market

Just started my first investment in US market last night. It is exciting as the change in share price can be quite drastic within seconds.

Ring Energy Inc (REI.NYSE)

Jin huat! 

In the green for the first time in FY2019 then came the pandemic. 

1) Hedged from now till December 2021, means they are not required to deliver a single drop of oil to get paid. Note, there is a difference in their hedged price in FY2020 & FY2021. The later is 5-10 USD lesser.

Reference from REI 1st Qtr Presentation Slide, page 19

2) Delaware sale was previously announced back in April that they entered into a PSA. Current ongoing for due diligence from the buyer side. Deal should go through within June.

3) Started shutting down wells in April and 100% shut down all well production on 23rd April.

See the Transcript for Q1 REI earn calls here.

Fortuna Silver Mines Inc (FSM.NYSE)

Bought it the first thing when market open when I see silver price at 16.8 USD per ounce.

 

It is one of the few silver mining company in the green and only one below NAV. 

(Important thing is price/NAV below 1, I am that cheap)

As of now, its price per NAV is already above 1. 

Disclaimer: Shared opinion on this blog is not to be treated as investment advice to the readers. Please do your own due diligence and consider your financial goals before investing.

Gold/Silver Ratio

Another busy day at work. Market sentiment seems to be lousy today.

I think it is a good day to promote the shiny side to people on a red day. the importance of precious metal.

1) With the current gold/silver ratio at 109.67, silver is a steal at its current price provided gold stays above 1700 USD per ounce.

Historically the gold/silver ratio is at 60 for the past 20 years and usually at its high when above 80.

Reference from Seekingalpha

2) Supply & demand for silver has always been healthy when compared to gold. At least 80% of the dug up silver are used up yearly either for industrial use, jewellery or silverware. You may read the details here.

Reference from GlobalNewswire

3) Using common sense, historical high for gold is 1869.90 USD per ounce while historical high for silver is 48.58 USD per ounce. The odds for gold to flip from its current price of 1700.71 USD per ounce to 3400 USD is not unlikely, but that is just a 1 bagger. Silver on the other hand when spike up can hit at least a 3 to 10 bagger depending on the amount of frenzy going on during the spike.

Trade of the Day

Biolidics (8YY.SI)

Sold Clearbridge (1H3.SI) & bought last Friday at 0.46, sold in the morning at 0.475. It might spike further but I like to pick low bearing fruit, sell first talk later.

Luckily I sold, now trading back at 0.46.

IX Biopharma (42C.SI)

Bought back my weed at 0.28. Hand itchy, better not follow my trade, these are all for speculation unless you are buying for long term.

Disclaimer: Shared opinion on this blog is not to be treated as investment advice to the readers. Please do your own due diligence and consider your financial goals before investing.