Sprott Groupie comment brought rain...Well that didn't take long. A lot of people as well as friends and associates criticized
my use of the term "Sprott groupies". Of course we are / you are. Think about it for just a minute.
What is Eric Sprott's investment strategy? Buy stocks he thinks will go up so he can sell? Nope.
At least I don't think so. No, I see the plan as very simple but calculated.
Many will view his holdings in Kirkland Lake and say "Look, he's selling so that he can get in on the ground floor of ABC shot in the dark mining!" They point to his selling in 2018 and leaving the board in 2019.
IMHO, the business plan is to use an army of geologists and engineers to identify promising
potential deposits, seed the company with enough funds to allow drilling gaining a 10-20% holding which then encourages us the groupies to pour in. This forces the stock higher thereby enabling financings for the junior at attractive prices. Sometimes he partcipates. Remember, his exit strategy can only come from a takeover due to insider trading filing transparency. With over
90 companies seeded in this manner, and $millions of ongoing drilling. It doesn't matter which
2 or 3 % actually make a discovery (think KL, WM, JAG, PGM). The danger for the groupies
is to think that AHA! this is the one I am going to buy. Be careful. The majority of those 90 plus positions were bought years ago. When one does hit, he can add substantially while most of the
groupies are diluted out
Today's podcast was I think a bit insulting for us groupies. Seriously? "I don't post on companies I'm involved with because they might throw me in jail." The podcast is always more promotional
than any chat room and always about ES holdings. We all know that, but don't tell me you aren't
promoting. Hemke said that the FVL market cap was "what $200 million" and ES didn't correct him. Fully diluted stands at 307 million shares or $370 Million market cap. Ooops? Maybe not so much upside leverage as we thought.
FVL looks very promising and the buying is impressive. Let's just hope that our "groupie" ranks
aren't starting to see some institutions slithering in.