2018 so far has been disheartening for most commodity stocks. The commodity stocks that the Horg family owns have declined by even more. My investment performance since 2006 has declined to an average annual increase of 10.5% (beating all U.S. stock markets, pension funds, and college endowments by just a few percentage points per year).
2009Q1 was an even worse time for everyone not holding assets tied to the value of the U.S. dollar. Like most, my investment performance had gone negative. Many sold in the belief that stocks follow the laws of physics and that momentum would drive their stocks ever lower. I sold, too, but for different reasons. I saw and still see the stock market not as a mass with momentum, but as a giant Ouija board that fluctuates randomly around fundamental values. I sold not to join the mass run into U.S. dollars. I sold simply whatever went down the least in order to buy whatever went down the most. In other words, I rebalanced. I recovered, prospered, and started Three-Year Double.
2015 was THE WORST YEAR for my investment performance. I had moved one hundred percent into gold stocks in February, 2014. 2015 was demonic for gold stocks. I scoured through every document and video that I could find wondering what the problem was. I wondered if somebody had genetically modified a goose to lay a golden egg. I became aware that the ocean contains a lot of gold that had been uneconomic to extract, but I wondered also if somebody had genetically modified microbes to collect ocean gold economically. I found the concentration of gold in ocean water and calculated that even if microbes could separate gold from ocean water at zero cost, the energy cost to transport the separated gold to a collection point far exceeded the market price of the gold.
2018 has not been nearly as bad for me as 2009 and 2015 were. But in one regard, 2018 has produced its own brand of insanity. The Horg family now owns six stocks. Three of these six stocks (KRLTF, WTRNF, and NWLNF) are now priced below current assets net of all liabilities:
One of these stocks (KRLTF) is now priced below CASH net of all liabilities:
Even in the depths of the 2015 gold stock bear market, I knew of no stock priced below current assets, let alone cash, net of all liabilities. The stock that came closest to this level of insanity was Northern Freegold. Below is part of an exchange I had comparing the cash of Northern Freegold to the cash of Kaminak Gold:
Kaminak Gold went on to do well and Goldcorp took it over. Northern Freegold went on to do even better, and Goldcorp took it over as well.