RE:RE:Increasing Investors ValueOilminerdeluxe wrote:
Why is Sprott leaving?
That's a matter of debate. Here's my take:
DMM is held in Sprott's Canadian equity fund. Eric Sprott (gold bug to the extreme) was a big supporter here for a long time... and becuase of the (and I'm speculating here) terrible performance of his gold-centric portfolios he was voluntold to step aside:
https://www.sprott.com/news-centre/press-releases/sprott-announces-portfolio-management-changes/
The new portfolio manager has, according to Dynasty IR, decided to shrink the number of securities in that fund significantly. DMM didn't make the cut. Since that time, Sprott has been trying to escape their position here, but they owned too many shares that their escape decimated the share price.
If you go through the SEDAR Alternative Monthly Reports, you'll see Sprott's last change of shares prior to earlly 2015 (when Eric stepped side) was a sell and buy (tax loss, re-buy) for a basically equal number of shares in late 2012-early 2013. Prior to that it's basically been all buying.
So Sprott trying to escape their huge position in a relatively illiquid stock has annihilated the share price. Depending on your outlook on the company, gold and investment timeline, Sprott's actions have presented you with either the opportunity of a lifetime or destroyed your investment here. Take your pick.