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Gold/Mining/Energy : Sandstorm Gold -- Ignore unavailable to you. Want to Upgrade?

To: onepath who wrote (349)	10/23/2010 1:54:39 PM
From: roymario	Respond to of 1133

OP, a good analysis IMO. Assuming SSL manages well they will come up with a new project. If they are average management then they will simply trade one asset, cash, for another asset of equal value (future royalty rights) and the shareholder will be no better off in terms of net present value. (not what i expect from them) Instead IMO we always want to find a management who is more skilled than average so that when they trade cash for future rights they have seen a market inequity and they find a way to turn it to advantage by trading cash and getting a royalty right that turns out to be a bargain price. (this is what i want) It generally takes time to recognize that any transaction is a deal. I therefore tend to like these wts which have a distant strike date. For me they tend to be a long term buy that hopefully increases in value. I choose other company vehicles than royalty companies for quick in and out trades. I continue to expect SSL will go to the market for more cash every time they are prepared to grow again. I agree that their PP seemed reasonably priced and there is no real dilution in percentage of ownership for a current investor who is prepared to "anti up). As well, IMO, if I do not anti up but continue to hold I should still end up better off by my % of the bargain procured. It all comes down to choosing management who has good forward vision on buying assets. Lots of luck in our finding such teams! R.