This month’s Champion has a truly unique story. Nearly two years ago, he selected the very stock that secured his victory this December… almost two years ago this little-known oil and gas junior more than quadrupled in value, before giving up enough of its gains to see this member finish 2nd in a heartbreaking loss. Second chances can be a beautiful thing – read on to learn about the amazing details of this investing story…
December 2016’s Stock Challenge had a different feeling from the beginning. This is the first time in over a year there has not been a past Stock Challenge Champ finish in the Top 10. In fact, by the last trading day, a total of just three former Stock Challenge Champs had moved into the Top 20.
* With 20-ounces of silver on the line for the winner, over 260 members joined the contest.
Long-time member and past Stock Challenge Champ ‘beata35502’ noticed the trend early, writing on December 11th:
“VERY unusual to seen no former winners in the top 25! Is the marijuana craze over or taking a breather?”
Long-time member and past Stock Challenge Champ ‘avispa’ followed up on December 15th, noting:
“Hi Beata – — The OLD geezers are lining up beahin[d] the top 25. Certainly unusual . . . The “new generation” ducklings are taking over? . . . anyway shipping companies seems to get awaken.”
It is a bit of a fraternity for these former champs as they weigh in from time to time and watch each others’ selections closely.
These comments gave us a chuckle as the ultimate winner of December’s Stock Challenge ‘joeyg48’ is one of our oldest members.
The Hamilton, Ontario native has been a member of Pinnacle for 9 years and 43 weeks. Nearly since our inception. His victory is fitting, given the fact we are launching our new and improved Pinnacle website in the coming days to mark our 10-year anniversary. (don’t worry, the Stock Challenge will continue to function in its current form).
US Indices on Fire During December
With US indices heading into new record territory, it was a mixed bag for the junior space as several marquee names fell victim to the usual seasonality weakness, including tax loss selling.
As we began to write this month’s conclusion and summary of the Challenge, a feeling of déjà vu quickly came upon us. With a quick search, our inclination proved correct. It was but 22 months ago that Junex (JNX:TSXV) nearly secured the victory for… yes, you nailed it, joeyg48.
Check out the below excerpt from way back in Febuary of 2015:
“A previously little known Quebec-based oil and gas company, Junex (JNX:TSXV), stole the show down the stretch of February’s Stock Challenge. While the company was a non-issue for the majority of the Challenge, it sent two members in the contest on a wild ride in the final 72 hours of February trading.
While Junex’s rise started off quietly, the stock went parabolic with less than 72 hours remaining in February’s Stock Challenge. Investors gobbled up millions of shares in the oil and gas stock as they attempted to revalue the company following recent flow test results…”
And,
“The following day, February 26th, is when Junex’s stock went parabolic, trading to an all-time high of $2.02 before crashing down to $1.46 at the close on 3.8 million shares traded.
Junex only closed in negative territory 4 times during the entire month…”
Finally,
“After nearly quadrupling in value from the beginning of the month to its eventual high on Wednesday, Junex simply could not hold onto its parabolic gains. The stock finished the month at $1.34, almost $0.70 below its high.
Pinnacle members ‘joeyg48’ and past Stock Challenge Champ ‘challengerguy70’ rode Junex to incredible heights, but ultimately fell just short of the victory.
joeyg48, with his second place finish and 75.59% combined average return for February, will be sharing the People’s Champ award with 3rd place finisher challengerguy70 and his 74.08% combined average return.”
The original report was titled Junex fails to hold gains as ‘Lane4’ Crowned Champion in February’s Stock Challenge.
Junex | a Stock Challenge Story of Timing and Attrition
joeyg48 won December with a smaller combined average return (70.21%) than in February of 2015. Investing in the small-cap sector is all about timing; timing the cycles, timing the news flow and for matters related to this Challenge, when the next breakout is likely. joeyg48 has proven, without a doubt, he knows how to capitalize on timing.
Junex’s action this December was far less spectacular than its explosion 22 months ago; however, its timing was superior and enough to seal the deal for joeyg48.
Junex’s shares closed at $0.48 on November 30th, one day prior to December’s Challenge beginning. The junior oil company’s shares traded to a high of $0.83 on December 29th, before settling at $0.78 on the 30th.
A relatively new member ‘Zorta’ finished in second with an impressive 56.33% return. joeyg48 had no one pushing him in the final days, as this time Junex would not let him down. Zorta, welcome to the world of the People’s Champ.
The People’s Champ is a selective award associated with Pinnacle’s Stock Challenge and is given to the participant who failed to win, but nonetheless made a name for himself. It comes with no prizes and unfortunately, no glory.
Member ‘Itsasnapper’, another long-time member of over four years, took bronze and was the runner up to this month’s People’s Champ award! His 47.68% combined average return on the month was strong, but just not enough to win a contest with this caliber of investors.
The best performance from a previous Stock Challenge Champ came from member ‘SchiffKnowsBest’ who put up a 34.07% return – enough for an 11th place finish. He came out of nowhere in the final day of trading.
December’s Stock Challenge Top 10
Our champion receives the winner’s only Pinnacle Package – which includes the finest of garments fit for a champion: The Stock Challenge Champ Hoodie and a Pinnacle Digest dri-fit golf shirt (for those afternoons on the links). Wear them with pride joeyg48!
Exclusively for December’s Stock Challenge champion, member joeyg48 will receive not the usual 10-ounces of silver, but 20!
Congratulations to our new champion and welcome to the Stock Stars Hall of Fame! We look forward to watching you compete in future contests!
Good luck to everyone in January’s Stock Challenge, which begins on Monday.
Pinnacle Digest
December’s Stock Challenge Statistics:
Challengers: 263
Highest Return: 76.33%
Lowest Return: – 44.18%
Average Return: 1.49%
Previous Champs in the Top Twenty: 3
