They had to finance to buy the land, seed, and millstones too - i think this is a major factor, that so much of the paper out is relatively new, bought in the financings at .40 and .45 last year, with the wts thrown in as sweetener ... lots of profit now in the hands of people motivated to take them, and who may be preparing to take down the next financing when Sandstorm decides it's time ... anybody think they've finished all growth plans? ... me neither
'The stock just got ahead of itself' - you say this upthread, and i think it's exactly right, that's all there is to it, there was a surge of speckie enthusiasm that took it a bridge too far a bit too early ... now it's back to a nice trendline of bottoms, tested support and found it strong so far, this is all normal stuff imho ... fwiw, i got caught higher too - while we've had this in sheltered accts for going on a year now, i had fresh cash in april and bought as high as .90, then averaged down lots in the .70s, again now in the .60s ... feeling slightly dumb for failing to see the full dip coming, but that'll fade as it moves up over the years [this is definitely core holding to me, no trading outside rrsp/tfsa accts]
For such an elegantly simple business model, there sure are a number of variables that come into play here ... price of gold, production levels of each individual mine, company-specific financing/promo cycles, etc ... things could go wrong with any of these mines, the effect would be only a delay in cash flow though, not an elimination ... and the g&a stays pretty slim unless management decides to reward itself unduly ... all in all i like it a lot, bought some Franco wts recently and it's a classic blast from the past, but happy to hold far more ssl/ssl.wt, where you're not paying quite so much for the name on the hood |
