The Benefit of Investing via Private Placements

Written by Nick Hodge
Posted February 5, 2020

Earlier this week, I sent you an interview with Revival Gold (TSX-V: RVG)(OTC: RVLGF) CEO Hugh Agro.

The interview was about a resource update that would soon take the company to nearly three million ounces of gold in the safe mining jurisdiction of Idaho. 

As it happens, that resource update came out later that day. 

Here’s what shares have done since:

Revival Gold February 2020

They’ve gone up more than 35% in three days to trade at C$0.84 on strong volume. 

That’s a new 52-week high for the stock. 

So anyone who bought Revival Gold in the past year is up. And that includes many Outsider Club premium members. 

But some made more than others. 

We have different levels of service around here based on risk appetite, investment goals, and themes. The very highest tier — called Nick’s Notebook — offers access to private placements to high-net-worth and/or accredited investors. 

In this case, members of Nick’s Notebook and I were able to invest privately in Revival Gold at C$0.30. So when shares went to C$0.84 this week, we were sitting on a 180% gain. 

And not only that. One reason — among many — that private placements are so lucrative is that they also often come with warrants. A warrant allows you to buy more stock in the future at a certain price with no downside risk!

When we got C$0.30 shares in Revival… we also got C$0.45 warrants, which we then converted to shares. Those shares are up 86% as of this week. 

This is how the rich get richer. This is how I got rich. This is how I’ve made people rich and/or richer. 

They don’t all work out like this, of course. That’s okay. You have no downside risk with the warrant. So when they do work out… you can use your warrant to compound the gains. 

Let me give you another quick example. 

Tesla (NASDAQ: TSLA) is all the rage right now. It’s gone up more than $100 per day for two days. It’s all CNBC can talk about. It’s cute. 

It’s true. Over the past five years, Tesla has been on an incredible run. Shares have gone from $150 to $968 (most of which has come this year). That’s nearly 550%. Respectable. 

I found a better way to play the world’s conversion to electric cars. Lots of companies can make batteries and cars. 

But the Earth ain’t making more lithium. 

With this fact in mind, I set out to invest privately in the best-of-breed junior lithium companies at the outset of the lithium boom. 

One of those companies was Lithium X, which Nick’s Notebook financed at 15 cents while it was still private.

While Tesla was still stuck at $150 per share… Lithium X was busy getting acquired for C$2.61 per share… and we were busy putting up to 1,640% in our pockets. 

It’s taken Tesla five years to go up 550% and people are slobbering over it. We made three times that in less than six months. 

That kind of 1,640% gain turns $20,000 into almost $350,000. 

Ask me how I know. 

Call it like you see it,

Nick Hodge Signature

Nick Hodge

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Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

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