 Good day, fellow investors. Today was a good day for me. A little bit also said. I'll explain that later. But Neveson Resources got an offer to be acquired from Lundin Mining. The problem is that they rejected the offer because the management wants more money probably and they're negotiating, which is a good deal and shows that the management is good. However, the stock is now trading at $3.43 but the stock was close to $2 just a few months ago and I want to take this example of Neveson to show what is my investing strategy and how I go about investing. What I seek is a margin of safety first, so where I cannot lose money or the likelihood of losing money is very, very low and where there is the potential for 2050 100% returns over the next, let's say, short term to medium term, few years. With Neveson, I started buying it above $3 per share, a long time rebalanced a lot of times, bought a lot when it was 220, 240, 209 remember, 202 and rebalanced according when it went up. But it was my biggest position and now that there is an offer from Lundin, I have closed it down, I have left a small position that is okay for the merger arbitrage play but it isn't the asset play it was anymore. So let me explain what Neveson is, what happened, what's going on and how I went about it and how I reached my satisfying investment returns in this case. So Neveson is a Canadian mining company with a copper zinc mine in Eritrea and a copper gold project in Serbia. I was bullish both on zinc and copper which made Neveson a perfect sector play. Further, Neveson has no debt and had a cash balance of above 400 million that fell to around 150 million after it acquired reservoir minerals and the TMock project in Serbia. So the cash balance, the no debt, the Eritrean mine that was cashflow profitable forever and will continue to be so for the next four years, made Neveson a very low risk play and the extremely high grades, the extremely high grade ore body in TMock also made it likely that the project will be acquired by somebody as it is tempting when the pre-feasibility study is made. As soon as the pre-feasibility study was made there you have an offer by London which shows that high grades recently it is always a risk reward but high grades usually win. However, the stock price as you can see was very, very volatile and this shows how Wall Street is short-term oriented, myopic and that's what we do it yourself investors have to take advantage of. 2015-2016 you see the stock price go from above for to below 250 that was due to the commodity crisis then it recovered a little bit was volatile for 2016 but then in 2017 it really crashed. Neveson acquired TMock and then when it tried to switch from copper mining and the secondary ore to the primary ore at Bisha they didn't manage to have good recoveries and the stock price dropped and the stock price dropped especially when there was the dividend cut. Dividend cut nobody likes that because the investors that are there for the dividend start selling and nobody wants to buy so the stock price fell from 3 to I think 260-230 immediately. I managed to sell and this is also what I do. I managed to sell in the first half an hour that the dividend cut was announced and then rebuy the whole position and even more lower so if you are really applying yourself to the stock market you can also take advantage of such situations so that further increased my return on Neveson. However you can see here further it was again bad in 2018 the copper prices were volatile but then suddenly good news started to arrive recoveries in Eritrea were better cash flows from Eritrea were better the pre-visibility study at TMock was good and you can see how the stock price really ramped up up till now what is 340 however what did I do I open a position which is a small part of my portfolio when I see okay there is value then I'm ready okay what's the worst thing that can happen that's what you always have to think and then you say okay if that happens if that happens if that happens okay and then you adjust your portfolio exposure let's say you start with 2% and then when there is really panic you increase it to 10-15% 20% 25% depending on how good is the margin of safety and the bargain and that's what I did with Neveson I started with a relatively good portfolio position traded rebalanced around but the bulk of my position was opened between 2 and 240 because that was an extreme bargain for me just to summarize Neveson paid about 500 million for TMock which gives it a minimum value of 1.7 per share when you add the 0.5 in cash there was a margin of safety of 2.3 and when the stock price traded below that don't forget that London also offered to buy TMock two years ago so there was really a margin of safety and of course Eritrea was completely free even if it was cash flow positive and there is still exploration potential and there is still exploration potential from the lower TMock zone plus exploration potential around TMock that we have seen now good results coming in so margin of safety with so much exploration potential and potential coming from the lower zones and other projects which made it a low risk high return investment now the sad part unfortunately I saw Neveson also as a long-term player long-term investment unfortunately the company was quality which means that some a bigger player takes it over that's how things go so no long-term return I will look at London mining to see and take the volatility there if there is value but that's a completely different story now if you followed me on Neveson you might be wondering what to do as I said I reduced my position read sold most of it just left the margin arbitrage exposure portfolio exposure that I have as I'm very very happy with the returns a year yearly returns the bulk was I don't want to talk about it I have to be happy and be grateful for what I got however if you want to take advantage of the merger arbitrage traders that will be coming in the offer is what 260 the price is 240 so there is potential for what's 8% there will probably be a new offer from London or from somebody else as the management is negotiating there will try to push the price as high as possible so perhaps it will go to four for something but that is what 20 25% upside while the downside there is always downside if London says no I don't want to deal with you anymore and there is no other buyer then Neveson could be put under pressure and the stock price could go lower so that's a different play it's not an asset play anymore it's a merger arbitrage play the points that I want to share from Neveson from this experience find find value with a margin of safety the rest will come with time if the value is there never buy a full position immediately always wait for a better entry points that always come in volatile sectors like commodities and especially mining having investment strategy set up beforehand and look at all that can go wrong and think ahead okay what will I do if things go wrong this allows you to take advantage of dividend cuts and other irrational moments panic sales from other people always take advantage advantage of other people's irrationality so never fall in love with the stock listen to what the market is doing and take advantage of that do research the more research you do the better we will understand the investment and more opportunities will come your way in whatever market and of course always rebalance a little bit around the intrinsic value you have a value have calculated the value for me it was 2.9 for Neveson with expecting a 20 return over the next five years so I always rebalanced around that really bought a lot when the price went down and took advantage of the volatility thank you for watching looking forward to your comments if you have been with me on Neveson for the past six months or eight nine months since I have recommended the stocks on the channel let me know in the comments below don't forget to take a look at my book that is available on Amazon and I thank all of you that have bought and supported me with the book see you in the next video