Why I Sold Half of My Liberty Star Metals and Uranium Position: The Abridged LBSR Story

Why would I sell of my position in Liberty Star Metals in July?  Rule #1, follow your rules.  After this run I had an unrealized gain of near 100%, allowing me to pull almost all of my original basis out of the stock and let the 52% ride essentially for free.  Honestly I should have sold the whole position, but my strategy was to hold until I could pull my basis out and I did.  Obviously I believe further upside lies ahead.

After we experienced this large gap up in May, volume started to fizzle as the bulls ran into a broad based market sell off in August.  Currently a floor at 0.04 is holding up, if we get any action below this level it would peak my interest, for now I hold a fraction of my original position. 

While LBSR has attractive claims and absolutely amazing properties in Alaska, the political environment in uncertain, they have been under-capitalized, mining bans on claims near the Grand Canyon, and seemingly lax drive and management have had the company jumping from one money pit to the next.  Aside from the possible porphyry copper and gold system on their Tombstone claims there may be one bright patch. 

Larry Liang was recently named President while James A. Briscoe will stay on as the Company’s Board Chairman, CEO and Chief Geologist.  This was a smart business move.  Mr. Liang previously worked for Tian Lun Law Firm and Bank of America and is a graduate of University of Arizona, James E. Rogers College of Law and Southwest University of Political Science and Law.

Current Issued and Outstanding Shares: 625,099,389
Cashless Warrants: 37,171,157
Average Volume: 3,064,528 
52 Week Range: 0.195 - 0.025