Just wanted to share my story about why I did not invest in Vanadium and the company Largo Resouces

Six to 12 months ago (do not recall when any more) , a very respected friend of mine that made big money in Vanadium stocks recommended  me to buy into Largo resources, as the company was generating lots of cash, was one of the only profitable players, and planned to increase production substantially.

My take on that: you have to buy resource stocks when the companies are NOT making lots of profits, speculating of a revival in the respective commodity these companies are present in and not when it looks too good to be true.

That’s the first reason why I passed on Largo, secondly and equally important, Vanadium prices had gone up like crazy due to China (remember Lithium?) and would only go further up. As a contrarian investor and China real estate critic, I was very skeptic about this, so for these 2 reasons and the fact the company already was up 10 times since bottom I passed.

Fast forward 6/12 months, what happened? Vanadium down big and share price -50%. I have no clue about future prospect company as this is a healthy company still generating lots of cash.

Maybe Vanadium will continue to go down or not, I have no clue, but I prefer to buy like with gold / silver or uranium after long and yearly consolidations.

Lesson learned: every commodity has its own cycle and eventfully turns when going up parabolic like Vanadium and many others!

Remember, a lot of investors think they are clever when they pick a stock that goes up 10x, but when the underlying commodity is up 500% this is not so difficult.

Same happened with Silver in 2008-2012, when silver rose similar percentages like Vanadium now (from 9$ to 50$), AG went up 14x, HL 10x, PAAS 5x and EXK 12x.

Conclusion, buying resource stocks before a big parabolic price rise in the underlying commodity can be rewarding