RE: RE: Any thoughts on volume Our board is infested with technical traders - sad days.
Anyway, an interesting comment was made about SSL, that selling shares at its current share price is anti dilutive. I agree. As of today, SSL is trading at almost 60x earnings, and probably in the range of 30x-40x cash flows. All streaming / royalty companies are being bid up. So, for the 90% of shareholders who got in sub $11, this $13 price tag is actually anti-dilutive, assuming they sell some shares. If I was Nolan I'd be doing another placement right now.
Same thing for SND. The first few deals Nolan did with SND flopped. The share price was killed. However, with the stellar performance of SND, and the recent CSI deal, some measure of faith in SND and Nolan has been restored. If we were to spike to $0.70... well on a NAV or P/CF basis 2-3 years out, we'd be considered rather overvalued, but, if we do a placement at $0.70, I think there is an argument that it is actually anti-dilutive and a big positive for shareholders. Assuming Nolan avoids doing anymore bad deals (RDA, TER, NDX), $50 million or what have you in in the bank in SND is a ton of money. For example with CSI, if you present value the stream (assuming the repurchase), you get a present value of ~$15 million relative to the investment of $5.25 million, or about a 4x increase in NAV from the deal. If we raised $50 million, there is a lot of leverage, and I think it would support a higher stock price.
I still haven't looked at the new coal deal... Nolan must really believe met coal is going to recover. Hmph.