In this article I am planning to cover the experiment. This is my approach in trying to pick some stocks/ETFs which have a 5-10x stock gains ratio. The picks are not mine, but they are based on what I saw on some subscription sites over the internet.
I am picking these stocks for an entertainment purpose in order to add some new ideas and view on this personal goals blog, even though if the below views are not mine and even though the stocks selected are inspired from other sources.
Edit: 2 month update
Contents
Budget allocation for the experiment
At first, it is time to select the budget for this. I have decided to use 4,000 EUR for this activity as I am currently withdrawing funds from Mintos and Crowdestate in order to better manage the coronavirus outbreak. All orders and transactions are done via my broker – Interactive Brokers.
From the original 4,000 EUR due to commissions and currency exchanges, the total amount prepared for this investment ended up to be 3135 EUR.
- AUD – 1318 (750 EUR)
- CAD – 710 (465 EUR)
- USD – 1655 (1520 EUR)
- EUR – 400
At this time, I moved forward with it across these currencies and exchanges, but the 6 AUD fee for a transaction is too much for my blood. I accepted this today as I want to do the experiment, but for future transactions I will tend to avoid this.
Focus areas for the investment
For this experiment, I focused on several areas based on the notes I saw and read. Some of them are 1-2 years old, but due to the coronavirus outbreak, the stock prices are low. Due to this I decided to just go for it and invest with my normal long term approach. I do not plan to turn a profit for this in 1-2 years from now, but I hope to gain something in 5-10 years from now.
Oil
Oil is down a lot right now. I focused mainly on deep sea oil. I still believe that this will be required for the next 10-20 years as the current world economies are not yet ready to transition to something else.
| Ticker | Name | Exchange |
| TDW | Tidewater | NYSE |
| CGG | CGG | NYSE |
| HLX | Helix Energy Services | NYSE |
Metals
Copper and other earth metals are needed for the production of batteries or other cool and hype stuff that is going into electric cars and our interconnected future.
| Ticker | Name | Exchange |
| NCU | Nevada Copper | TSX |
| FCX | Freeport | NYSE |
| POS | Posidon Nickel | ASX |
| WSA | Western Areas | ASX |
| MCR | Mincor | ASX |
| PAN | Panoramic | ASX |
| ARU | Arafura | ASX |
Uranium
Nuclear power is still in hype and some countries rely on it heavily. Compared to oil, the uranium industry does not usually reduce production to keep the price up and at the moment I think that the price is low. Just ideal to start investing in this sector.
| Ticker | Name | Exchange |
| BMN | Bannerman | ASX |
| FCU | Fission Uranium | TSX |
| UUUU | Energy Fuels | NYSE |
| BOE | Boss Resources | ASX |
| PDN | Paladin Energy | ASX |
| DYL | Deep Yellow | ASX |
| URG | UR Energy | NYSE |
Solar and Hydrogen
Oil and uranium. A lot of my experiment goes into power. This is why we should also add solar and hydrogen to the list. These are still young in my eyes, but have a lot of potential as future energy sources. Again, I am looking at 10 year plus time horizon.
| Ticker | Name | Exchange |
| INRG | iSHared Global Clean Energy | IBIS |
| GCM | Gran Columbia | TSX |
| PVG | Pretvim | TSX |
| NEE | North Vertex Mining | TSX |
| EXK | Endeavour Silver | NYSE |
Drones
I am finishing the list with drones. Either in warfare and peace, drones have changes a lot in the last 10 years. It is time to bet on them for the next 10.
| Ticker | Name | Exchange |
| RADA | Rada Technology | NDX |
| DRO | DroneShield | ASX |
What did I end up with?
A picture is worth a thousand, this is why I am posting the one below. Already 2-3 days in, depending on stock and due to the volatility I already have a stock down almost 10%, but several up similar percentages, one even over 30%. I am still waiting for most of my AUX stocks to be bought, but my orders have not yet been met.
Although this is called the experiment and is aimed at stocks which have a 5-10x gains ratio, this is still a good investment in my eyes for the long term. Most of these stocks are focused on necessities which are currently at a lower cost. Some due to covid-19 or other due to some harder years that lead to this moment.
Conclusion – looking at the future
As you are already aware, it is too early to say if this was a successful experiment or not. I am planning to update this article with updated at the following milestones 1, 3, 5 and 10 years. Until then you can check my quarterly passive income reports or my financial portfolio for more insights on these 5-10x stock gains.