GREY:STTYF - Post by User
Post by
materialsgirlon Mar 10, 2014 10:55am
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Post# 22302327
Classic case of
Classic case ofSometimes the macro strategy is excellent but the devil is always in the detail. the macro strategy for SND was good. But the process for selecting where to put the money and the conditions they accepted have all turned out to be terrible. They clearly went in too early into companies that were too small. They also did not judge management properly in some cases.
The concept of buying royalties in minerals other than precious metals is still 100% valid. SND is better prepared than any other organization to execute in the future.
SND has no debt and no significant ongoing expenses. This is positive. They also have very little cash or cash flow to fund new royalties so it looks like a sleeper for the rest of the decade.
Possibilities include
1 merge with SSL. This seems likely. SSL may not like it but SND might be only 7% or 8% of the new more efficient entity
2 sell royalties and liquidate (unlikely as there is no buyer)
3 do a large public offering to get cash into the treasury. 40 million shares at $1 would create a new platform. Opportunities to use this money would be plentiful.
4 staying the course for 5+ years and hope that something may happen with Colossus or some other asset
There seems to be no near term trigger to raise the share price by much
Just my 2 cents worth
Mat