Sandstorm Metals & Energy Ltd STTYF

This Dance Ain't Over

[zentrarianNZ]

There is no question that management made some blunders with the thermal coal and oil streams, although IMO that has more to do with macroeconomic conditions than in their assessment of the projects. But they aren't perfect and it is revealing that they were quick to own up to the mistakes. The thing to keep in mind is that Watson and Co. aren't going to abandon SM&E just because they had some washouts. If anything, these setbacks will only cause them to rise to the challenge of turning things around. The recent dual deal with Colossus indicates they are already moving at least some of their attemtion from SG to SM&E.

Farsighted investors will put the past behind and consider the risk-reward going forward. Before this recent crawlback, SM&E was selling near liquidation value(!) and that encouraged me to finish buying half my intended position. (As luck would have it, right at the low.) I think there's still great value here for a long term investor, and the only reason I haven't gone all in is that I agree with most posters here that base metals are likely to take a sizable short term hit before inflation starts to really kick in, so there may well be better buying opps down the road. But I don't intend to sell or trade in the interim and risk missing a reevaluation by institutional investors recognizing what Watson has done with SG.

In short, I'm convinced that the "ugly sister" will be turning some heads before this dance is over.

z.

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[doomz78]

I agree with your assessment of this stock.   People excpect all stocks to behave like silver wheaton or sandstrom gold.  Right away , parabolic, with no hiccups.  Unfortunately that is not how risk behaves in the real world.   Sandstrom Energy and Metals will take the scenic tour of the stock world but will eventually be a 10-15 bagger.   Most people can

[zentrarianNZ]

Despite your name, I think you're going to have a great retirement with that strategy, doomz!...Those are also my 3 main investments, although I'm about 40% SG and 20% each SLW & SND, with a couple of juniors thrown in for laughs (and trading). SLW doesn't have quite the prospects of SG, being so much further along the growth curve, but it at least partially makes up for that with

[doomz78]

Silver Wheaton is large I agree and fairly advanced in it's developement.  But. but, but.  You have to look at the bigger picture and you might see why I am buying this stock along with SSL and SND at a 33% ratio. This is why Im buying SilverWheaton: They are currently streaming 25 million ounces per year at 4$/ounce cost.   So that's a revenue of 750 million in

[bob4977]

I have all three stocks in my portfolio too. I just have a lot of other stocks as well. I do favour the streaming model especially if inflation hits. Bob

[doomz78]

Well Sandstorm Gold, Energy and Metals and Silver Wheaton is the ultimate inflation hedge in theory.  I could make a case that utility stocks are also an inflation hedge.  But with my 3 stocks you get exposure to gold, silver and oil, platinum and palladium, copper.   Again In theory those are the ultimate inflation hedges when done smartly.  And I believe that these

[zentrarianNZ]

doomz: Great minds think alike. Except for the slightly varying ratio, I have the same portfolio. And I'm also accumulating siver, which most likely has a higher longterm profit potential than gold, and less risk of confiscation. (I also consider SG to be safe enough that I don't need to back it up with bullion.) The few juniors I hold for trading are mainly to spice things up since I like

[Metalschic]

Like most everyone else, I hold both sisters.  Accumulating more SME than SG at this point, a junior tossed into the mix and a spec bio.  For years I accumulated gold bullion.  Work an overtime shift, buy an ounce of gold back in the late 90's / early 00's.  Then switched to accumulating silver.  Now I work an overtime shift an buy 10 ounces of silver and a 1/10

[bob4977]

ZentrarianNZ, I am expecting inflation to hit fairly soon. The commodities will definitely go up in price but the profits will be somewhat muted because their costs will be going up as well. Except for the streaming companies of course. Bob