RE: RE: RE: SAND is technically over extended: I think SND is a really good buy AT THESE PRICES. To say it'll be worth more the SSL is just silly right now. What I think is more reasonable is to talk percentage gain and it could certainly outgain SSL over the next few years. That said it also has more risk as commodity prices have bounced up and down rather dramatically. This makes it harder for Nolan and crew to determine the economics of various projects. The share price has been slaughtered due to some of SNDs streaming partners having really tough financial crunches. That said I think the share price is substantially below fair value and SND should make money on most of their streams.
One of the other issues with SND is one of their strengths - their diversity. Nolan Watson loves SNDs ability to invest in a variety of streaming deals given their broad investing mandate. The problem is most investors don't have a broad knowledge and therefore do not understand the economics of the various projects. I've read many posts on the SND board talking about low coal prices due to low natural gas prices. This is true for THERMAL coal but met coal is used to make steel not used for power generation. Yes met coal prices have also been low but it has nothing to do with low natural gas prices it has to do with less demand from China and elsewhere for steel.
I am long both companies but have far more coin in SSL right now. SSL is a market darling and is attracting a lot of attention right now. That is a big deal for streaming companies because they can raise cash easily and they also attract mining companies who want to partner with Nolan and gang. Just signing a streaming deal with SSL shows the market that your company has what it takes to get a mine up and running. I put some of my TFSA into SND as I like managment and think this has huge upside % wise and very low downside risk. If Nolan feels comfortable buying 400 000 SND at these prices I feel comfortable buying a tenth of that :)