Adrian Day: We Need to Act Now to Sell This Stock

December 31, 2018

By The Gold Report

Source: Adrian Day for Streetwise Reports   12/26/2018

Money manager Adrian Day explains why he believes investors should sell this stock before the end of the year.

Our somewhat aggressive limit to sell Nevsun Resources Ltd. (NSU, NY, 4.38–4.39) has not filled. Given the looming deadline, we now have a choice.

  • Sell shares in the market now, with a limit of $4.39. Given the currency conversion fee charged by most brokerages, this is essentially the C$6 tender price.
  • Tender your shares for C$6. Unknown currency fluctuations will affect the actual amount you receive in U.S. dollars or other currencies. Tender if pushing the tax gain into next year is important.
  • Do nothing; you will not receive more than C$6, but there is always a risk that Zijin, the acquirer, decides not to compulsorily purchase the untendered shares.

The currency is an unknown. There is a good chance that the Canadian dollar strengthens over the next couple of weeks, but the rate on the unknown paydate is unknowable.


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So, “officially” we are selling Nevsun at $4.39. To tender, call your broker. Most brokers have an internal deadline of 26th, 27th or 28th of the month.

If we sell at $4.39, we will generate a total return on this second tranche of Nevsun of 65%. (The first tranche we sold for a gain of 1,387%.)

We aim on one more Bulletin before year-end with a discussion of several non-resource companies, and a list of best buys for tax-loss buying.

I would like to wish you all the peace and blessings of the Christmas season.

Adrian Day, London-born and a graduate of the London School of Economics, heads the money management firm Adrian Day Asset Management, where he manages discretionary accounts in both global and resource areas. Day is also sub-adviser to the EuroPacific Gold Fund (EPGFX). His latest book is “Investing in Resources: How to Profit from the Outsized Potential and Avoid the Risks.”

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Disclosure:
1) Adrian Day: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Nevsun Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. Funds controlled by Adrian Day Asset Management hold shares of the following companies mentioned in this article: Nevsun Resources. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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5) From time to time, Streetwise Reports and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports (including members of their household) own securities of Nevsun Resources, a company mentioned in this article.

( Companies Mentioned: NSU:TSX; NSU:NYSE.MKT,
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