Michael SmedleySprott Resource Corp.SRHI.TOBUYMay 27, 2010
Masters of the resources game. If you believe in resources and gold, this is a channel that you can use. Should work well as long as resources work well.
Base metals are forming a bottom anyway. It is reasonable to assume SCP will do better than it has done in the recent past. He has only contemplated buying it.
Good, long-term track record. Has volatility, so use a chart with the longest term you can get. This is one where you buy on the dips. Good management.
(A Top Pick Sept 25/09. Up 32.4%.) Still likes. Have about $230 million in cash and liquid assets as well as about $100 million in investments, the main one One Earth, an agricultural with the first Nations in Saskatchewan. Could be a home run. A long-term hold.
Very shrewd resource investors. Own silver and gold bullion and cash. Recently made an acquisition of a natural gas company and are getting in at a very low point of the natural gas cycle. Conservative NAV of $4.
Buying management for less than cash in the bank. One idea they are working on is Earth1, which is a partnership with the First Nations group in Saskatchewan. Will develop a huge agriculture business. Long-term bet but a smart one.
The exciting thing right now is a wide-ranging program that they have is involving/assisting aboriginal groups globally in exploiting their own resources using Canadian capital and Western technology. Potential for a tremendous amount of money.
A resource fund. Has been under some pressure over the last little while just because of the nature of their holdings. As resources come down in price, this one will fall with it. A well-managed fund. If you are a patient investor, it is probably one you want to stick with.
Eric Sprott put together a little resource company that is largely metallurgical coal. Own a company out of West Virginia with about 4 million tons that should be mining by 2010. Metallurgical coal has doubled in price and there are great margins here. Also has a phosphate company. A good way to play phosphate and coal.
Relatively new company and consists of a very savvy group of investors in the resource sector. Have an eclectic collection including coal, phosphate, gold and silver. Great way for people that don't have a lot of time to do due diligence in resources for a diversified holding.
There are 2 commodities in the commodity sector that are still steaming hot. Coal and potash. This company owns 1 of each. This is a very interesting speculation if you believe coal prices are going to hold up. Looking at this one again.