Opinions
Michael Smedley
Sandstorm Gold Ltd.
SSL-T
PAST TOP PICK
Oct 31, 2013
$5.620
Stock price when the opinion was issued
Mining
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BUY
The analysts are very slow to raising their earnings forecasts with the price of gold. The rebound in earnings in some of these companies will be really something. He likes the producers as opposed to the commodity. Producers give you leverage due to the fast rising earnings. He likes the Juniors as well as ABX-T.
Mining
PAST TOP PICK
(A Top Pick Nov 20/19, Up 8%) It's lagged the sector, because it's a royalty company. You need to hold producers and royalties in a portfolio. With royalties, you expect more asset growth in the value of these assets. These companies help finish financing and building a mine for a producer. Once that mine is running, the royalty takes a cash flow off the top that the royalty company hands to shareholders, plus the value of the resource/metal. As that value rises, so will the cash flow. SSL continues to buyback shares, have a lot of cash flow, and are great value at current prices. He has a $13 target and it's a hold.
Mining
TOP PICK
Well run company which should experience a sudden and dramatic increase in cash flow. Another example of the sum of the parts is worth more than the whole. Turkish asset will soon generate cash and their Turkish partners are high quality. 9 Buys, 3 Holds, 0 Sells. (Analysts’ price target is $12.25)
Mining
BUY
He recently upgraded to Buy. He'd been concerned about capital allocation strategy, mainly doing equity financing to buy back shares at high prices. These concerns have largely passed. Cashflow from Turkish operations will begin to come through and have a potentially transforming effect. Malaise has passed, it's back in business.
Mining
(A Top Pick Oct 17/12. Down 59.13%.) Very clever company and you have to take a long-term view of their Mongolian interests. Did an interesting deal in taking out a royalty streaming company with cash. You have to be patient.