India’s Hunger Games

Anaconda Mining, etc.

I continue to be in India. India is experimenting with something never tried before. The whole country is in a curfew—all of 1.38 billion people. You cannot leave home and are not unlikely to get beaten up by the police if you dare go grocery shopping. Here are my thoughts on what is happening:

On Investments…

Adrian Day, in his recent newsletter, says, “Most markets have enjoyed a meaningful rally off their lows of three to four weeks ago. The S&P is up nearly 30%… It is not unusual to see an initial strong bounce after sharp market declines, but what often follows is a retreat to the lows—perhaps new lows… [W]e would be buying very little right now, waiting for a pullback to start buying again. Indeed, we would look for possible sells…”

The current rally is for me a time to lighten up some of my recent buys that have gone up a lot. I will certainly be patient about buying right now, but the following still tempt me at the mentioned prices:

• O3 Mining (OIII; C$1.42): This is a company I have written many times about. I fail to find why it has stagnated.
• Anaconda Mining (ANX; C$0.17): While the virus situation can make their cash situation difficult, there is a good upside in owning it. I do want to remember that while the gold price has gone up, the Canadian dollar has fallen. These should increase the profitability of the operations.
• Atico Mining (ATY; C$0.24): ATY continues to generate good cash flow.
• Otis Gold (OOO; C$0.105): This merger is to close very soon. There is still an arbitrage upside in owning it.

Warm regards,

Jayant Bhandari

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