In an effort to be as transparent as possible with subscribers, I am announcing that I will be exiting my position in Neupath Health.
My reasons for exiting this position are not really about the fundamentals, but more about the opportunity cost of holding it over other stocks. I don’t normally hold positions for this short of a time period, but I also have never witnessed a market environment for precious metals like we are currently seeing. With the bull run in play, I need my capital to be constantly working for me and the opportunity cost of holding NPTH is increasing to the point where I can't wait any longer, even knowing that a potential acquisition may be in the works.
With regards to the fundamentals, I was waiting to see the quarterly statement and more specifically, the MD&A, which I was not entirely impressed by. I also wanted to give the management team more time to source an acquisition and outline their growth strategy. I know it has only been a month, but we haven't heard much except a few small insider buys. The Telehealth boom is not going to last forever. NPTH will need to act faster if they want to capitalize on it.
I wish good luck to everyone who decides to hold NPTH. It is a great story with strong fundamentals and tons of blue sky potential. The company could very well make an acquisition in the next few weeks. If the company does decide to pursue a synergistic, technology-related acquisition, then I will revisit the situation. For this reason, I am going to leave the company up on the 'Stocks To Watch' list, as I still believe it is worth keeping an eye on.
For the next little while, my focus is primarily on Titan Mining (TSX:TI) , and it will turn back to Unigold (TSXV:UGD) again in early October when the company starts putting out weekly drilling results for the sulphide portion of their +2M ounce resource.
ALERT: Next week I will be releasing a report to subscribers on a renewables energy company with multi-bagger potential. Stay tuned.