J. Taylor Bullish on SandstormBecame aware of Sandstorm through my share ownership in Luna Gold (lgc.v). Saw this past weekend that J. Taylor issued a new buy recommendation on Sandstorm and is very bullish on the company. Wanted to highlight one paragraph in his recommendation:
"POTENTIAL SHARE PRICE
At present, Sandstorm is selling at about 6 times projected cash flow. By comparison, Silver Wheaton is selling at about 12 times multiple, Royal Gold at 15.5 times, and Franco Nevada at 19 times. Assuming the company’s first two projects perform according to or exceed expectations, Sandstorm should sell at a multiple of at least 10 times. Being more bullish on gold than silver in this environment, we would be surprised if this company does not ultimately sell at multiples closer to that of Royal Gold and Franco Nevada, especially if those two projects show more upside from exploration results and if more projects of merit are added to Sandstorm’s portfolio. Of course there is also great upside from a rise in the price of gold too and with what we believe is going to be a huge run up in gold mining shares over the next few years. Our belief is that on the assumption of an ongoing bull market in gold, and given the fact that this is a brand new story not told before to the markets, shareholders should enjoy at least a double from Sandstorm over the next 12 months. Your editor will indeed be disappointed with anything less. That isn’t to be taken as any guarantee, because nothing in life is guaranteed except death and taxes. But we think the probabilities of at least a double are high."
Also, to assist with further due diligence, check out the latest Sandstorm presentation from the company website (cut & paste link below):
https://www.sandstormresources.com/s/Presentations.asp
Bought some shares & now looking for some warrants. Ex-CFO of Silver Wheaton at the helm and favourable gold prices, lack of credit available for junior gold miners, should bode well for company moving forward.