Well, back on Sept 18th I blogged about QCCU – Quebec Copper and Gold – and its trading halt pending release of their Maiden Resource Estimate. At the time, I was in accumulation stage in anticipation of the news – It accounted for just under 10% of the DTM5.

I commented “What’s my perfect outcome over the next few months? It may not be what you think. I’m hopeful the MRE will be solid; And I’m hoping the market thinks it’s not good enough. So the project is proven, but shareholders are ‘Meh’. Cause I’ll be happy to buy more at a lower price if this is the case.”

Well count me as half right. The MRE wasn’t solid, it was ROCK solid. Like Huge and getting more huge. Investors weren’t ‘Meh’…..the shares are up 119% since it was halted two weeks ago. Not bad. Not bad at all. Volume spiked, but I’m happy to report it took a few days to push it higher, which gave me more time to build a position as the news disseminated into the marketplace.

Well what a difference a couple weeks, and a close to 100% return makes. QCCU now accounts for 33% of the DTM5.

Which brings us to some questions.

1. What the heck is so attractive about QCCU?
2. What’s the strategy from here?
3. Are you crazy?

Attractiveness

I’ve blogged about QCCU a couple times in the past. Now that the MRE is here, the thesis of QCCU looks proven: It is in possession of a very large amount of copper and gold, in a great location. The amount is set to expand (with more high confidence drilling). Winner Winner Getting Bigger Chicken Dinner.

Strategy

I’m a believer in having a strategy, and I also think that each position requires a unique one. No two risks or opportunities are alike. I’m a believer in the future potential value of QCCU, but I’m experienced enough to know that things don’t always work as well as we’d like. So, I will likely some ‘smart profits’ off the table during this explosive upside move.

If you’d like to learn more about my ‘smart profit’ approach to de-risking, check out this blog post

‘Hodling’ vs Profit Taking and the Middle Way

Basically, I’m going to sell a minority of my position at a great profit to lower my at risk capital.

Here is an example:

Invested	100
Current Value	180
Sell	50
Net Long	130
Original Capital Remaining at Risk	50
Margin of Safety	80

Original exposure was 100; Appreciated to 180; Took 50 off the table; Net Long is 130; Remaining (original capital) at risk is 50; Margin of Safety is 80 – ie. the remaining 130 investment would have to drop by 80 or 61% – to lose money.

I’m human and I hate to sell early, but lets be honest no one can pick a top or bottom perfectly. I’ll trade some upside for some risk control. And don’t forget – the proceeds don’t sit around under a mattress. They get re-deployed into other very interesting DTM5 targets!

Are You Crazy?

Perhaps. But that’s another blog post.

GLTA!!