GREY:STTYF - Post by User
Comment by
greenandgoldon Sep 13, 2011 12:05pm
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Post# 19036887
RE: Commodity flow
RE: Commodity flowVery good article. Highlights:
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1) Watson says, "This is a portfolio-based business. There is absolutely an urgency to scale up so that no one mine can destroy the business." He's talking about one of SND's deals blowing up and destroying SND's market cap. Like I've been saying, the biggest risk SND faces is the bankruptcy or failure of one of its partner companies, most of which are very small and will have difficulty raising money in a market crunch. I glad Watson has a strategy to deal with this problem--get very big as soon as possible to absorb hits and bad news.
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2) 18 hour work days and 20 possible deals on the development front at all times. All this activity and the strategy outlined above suggests SND will raise more equity and do more deals in the very near future (more Nat Gas and met coal mentioned as possibilities), perhaps by the end of the year. Watson seems to believe SND cannot afford the luxury of waiting for income to come in to expand.
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3) Watson: "I don't think there's a practical ceiling to how big we can get." That's awesome ambition.