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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 382.95

-0.8%

Nov 13 4:00 PM EST

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To: TobagoJack who wrote (170548)	4/17/2021 5:28:52 AM
From: sense	Read Replies (1) of 217750

Also poked at the royalty companies a bit more... and have discarded a number of my prior leaders: atbyf ROE 43.03, yield 0.78% nsrxf ROE 11.51, yield 2.11% atusf ROE -6.69 yield 1.33% sand elygfThe biggest advantage in the royalty payers... isn't in the low percentage dividend of the big players... its in the growth when you get in early... which I did in SAND as it was being launched when it was well under $1 back in 2007. The bigger companies are pricey, and really constrained in their ability to grow... so you see them putting more and more money into bigger and bigger projects over time... that tend to have less risk and thus less upside leverage than smaller projects. So a well managed junior, that manages the risks by managing, that also has much better growth prospects... is far more likely to grow value more than a major... SAND peaking at just over $15 in the fall of 2012... But, risk grows... if the junior isn't all that well managed. So you do need to find a management team that are already a big company quality team... that just haven't got there quite yet... And, the risk shrinks a lot... when market conditions favor the sector... so the timing issues are very real in the junior royalties... but the risk off bull market in PMs supports the juniors enough that it should have (royalty stock) investors seeking more risk (to a point) and not less ? The ROE metric works, too, but WPM at a 9 ROE with a 1.2% yield... versus a more junior player with a higher ROE and a higher yield... that should have more growth potential ? Or even an OR with an ROE of 1 and a Yield of 1.5%... that is only 2 billion in market cap vs WPM's 19B ? The early stage companies can't be judged by the numbers in isolation... rather than the trend over time... and a bull market skews the trend. The long term value in the juniors future yield... still depends on buying them cheap before they had one.

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