The Sell-Off of Ivanhoe Mines Begins: Move onto the next Ten Bagger

After a run of all runs, its time to sell Ivanhoe Mines (IVN) for good. I have held the stock off and on since February and I finally feel that it may have peaked. After shooting up 25% Thursday the stock is now trading over $11 a share. Back in February when I first got in it was trading at $4.40. That’s a total net gain of 160%, quite a nice ride. Last week, I advised to sell half the position and this week I am saying sell all of it and this is why. One IVN is trading well over its self right now, with a 12-month target of $10.80. To add to this volume has died off in recent time plus shorts have picked up. This stock could quickly turn the tables of the shorts are heavily bought up. After the big surge many analysts have downgraded the stock as well. IVN’s mean recommendation fell from 2.0 to 2.5 last week with 1 being the best and 5 the worst. I still love Copper as a market play but think IVN’s has outperformed the market so much that I don’t think it can continue to hold it up. To add to this the Mongolian government is still structuring the deal in a way that would cripple IVN with high windfall taxes. Personally I continue to foresee a downfall in the market. We have been riding high so much as of recent that a setback is needed. I think September will be a bad month for the stock market, which is another reason I want to sell and be invested in cash. This use to be a great stock to buy but in this market I am no longer comfortable with owning it and am going to sell off my whole position Monday morning. As of right now, IVN is up trading at $11.17 a share. I think I will be able to cash out around $11.30 as a high and $11.05 as a low depending on how the market opens on Monday. You can try and continue to play IVN up to $15 a share yet be able to bear the risk as if the shorts do come down hard it will be trading around $8. Best bet is to sell of this stock and move on and find the next 10-bagger.