A few weeks ago I posted a number of articles on the acquisitions made by Eric Sprott. Mr. Sprott is a notable resource investor - he invests in the long-term and his acqusitions are tracked by many investors. However, apart from being a long-term investor, Eric Sprott is a short-term trader as well.
Let me show a few of his last transactions.
Excellon shares went strongly up on the news that Eric Sprott made a substantial acquisition. To remind my readers - on April 4, 2016 Mr. Sprott acquired 6.67 million shares of Excellon (plus 3.33 million warrants) paying C$0.45 a share.
Then, between May 2 and May 20, he sold 0.6 million shares (a small part of his holdings) at prices ranging from C$1.32 to C$1.36 a share. In that way he made a nice profit of C$536 thousand in just a few weeks:
On April 4, 2016 Eric Sprott bought 10 million shares of Newmarket Gold at C$2.25 a share. On April 26 he bought additional 16.2 million shares paying C$2.80 a share.
Then, between May 13 and May 18 he sold 455.3 thousand shares at C$3.97 a share, on average. Similarly to the Excellon deal, he made a quick profit of C$627 thousand:
In the above described transactions, Eric Sprott made a total profit of C$1,163 thousand in just a few weeks.
I do not know why Mr. Sprott does it. Maybe he tries to time the market - when he sees that prices went too high and too fast he sells part of his investment to buy back at lower prices. We'll see.
But looking at his transactions it looks like he is able to time the market in some way.