Sandstorm Metals & Energy Ltd STTYF

RE: RE: RE: RE: RE: Cash on hand

[gopats]

rintin,

The warrants of SND were issued with an issue of shares as an extra incentive to those participating in the share offering.  Warrants always come with a strike price and an expiry date.  EVERYONE that buys warrants needs to know what the strike price and expiry date are.  To buy out of the money warrants on the open market is always a risk.  For you to make money the stock price has to rise above the strike price by more than the value of the warrant before the expiry date.  It's really quite simple.  I have lost significant money investing in warrants of companies I thought were rock solid and had a clear growth trajectory but that growth got interupted by the general market meltdown.  I was mad - at myself for not acting to protect gains I had made in the warrants (I was up more than 100% in some).  I said to myself that the stock will recover soon it's prospects are too good and it is a take out candidate etc etc.  The warrants expired out of the money and I got nothing.  Warrants offer great leverage when a stock price is rising but always carry the risk of expiring out of the money.  If managment of Sandstorm were to extend an expiration date on these Dec warrants how do you think I may respond having lost thousands in 2008 on expired warrants of other companies??  It should be illegal to extend the life of warrants.  Everyone buying them can easily determine the strike price and the expiration date.  

That said I've bought more SND in the last few weeks because I see some serious money following Nolan Watson and company around.  SND is undervalued relative to SSL which is undervalued relative to other streaming companies.  I think there is a chance that some investors with significant money will in fact push the share price above the exercise price of the warrants before they expire.  I like the logic that they may even push it close to the exercise price and still purchase shares at the exercise price if they wanted a significant number of shares.  If neither event happens I have confidence my investment will turn out very well even if we don't have a 25% pop in a month and a half.

The safer gamble IMO is buying one of SNDs beat down streaming partners.  This week I bought a little more NDX.VN for $0.02 in my RRSP account.  60-70% chance of a 10 bagger with reasonable chance of a hundred bagger and 30% chance I loose it all.