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SPDR Portfolio Short Term Treasury ETF T.SST.U


Primary Symbol: SPTS

The investment seeks to provide investment results that correspond generally to the price and yield performance of the Bloomberg Barclays 1-3 Year U. The fund invests at least 80%, of its total assets in the securities comprising the index and in securities that the Adviser determines have economic characteristics that are substantially identical to the economic characteristics of the securities that comprise the index. The index is designed to measure the performance of short term (1-3 years) public obligations of the U.S. Treasury.


ARCA:SPTS - Post by User

Comment by steveconon Nov 28, 2008 1:30pm
235 Views
Post# 15616818

RE: I love SST at these levels

RE: I love SST at these levelsIt is hard to fathom how this trades so low.  My guess is that it has been tarred with the base metal "run for you life" brush.  Even if one is still afraid of base metals at these prices, copper would have to plunge to $1 or less before our revenue streams are affected, given Capstones/ Lundins low operating cost and significant hedges.  We have already written off the zinc/ lead operations from Lundin, so we are only tied to the fortunes of copper with the current contracts.

This is the cheapest insurance you can buy, even if your not a precious metal bull.  There is literally NO overhead ($300K per month max), no mine operating risks and incredibly low contract prices ($4 silver, $300 gold) to protect on the downside.  The upside is leveraged far beyond owning bullion, ETF's, producing miners and even most explorers if gold/ silver takes off.

The one red flag for me is that management has not been buying at these prices and they own very little of their own shares.  Insider indicators aren't great correlators to success, but this point does introduce some uncertainty to the equation for me.  The low price makes up for this uncertainty and I am adding as cash becomes available.  Cheers.
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