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ProShares Short SmallCap600 T.SBB


Primary Symbol: SBB

The investment seeks daily investment results that correspond to the inverse (-1x) of the daily performance of the S&P SmallCap 600 Index. The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the funds investment objective. The index is a measure of small-cap company U.S. stock market performance. It is a float-adjusted, market capitalization-weighted index of 600 U.S. operating companies selected through a process that factors in criteria such as liquidity, price, market capitalization, financial viability and public float. The fund is non-diversified.


ARCA:SBB - Post by User

Bullboard Posts
Post by bot_feederon Sep 22, 2011 11:32am
318 Views
Post# 19071829

bloodbath

bloodbath
Wow, bloodbath in the commodities sector.

At risk of falling knife I did buy a bit more SBB just now.


At 4 bucks I believe fully diluted market cap is about 750 million.  With about 150 mil cash, that's an EV of about 600 mil, for the silver royalty and the gold property.

Even in an butt ugly commodities sector this stock may show some strength if and when some encouraging new drilling results come in.   So far they have a consistent record of good results with the drillbit.

Contrary to sisyphus I believe the silver royalty has value.  There is no guarantee that Hackett will be mined, but there are no guarantees for anyone.  Gold price could plummet and cause all the gold producers to go bankrupt.

Barring a dire scenario, Hackett being a high-value deposit and in a low political-risk area, the odds are good it will be mined.  And Sabina's only risk is that it doesn't get mined.  So long as it gets mined, they get their royalty even if Xtrata runs into hardships and fails to turn a profit on it.
Bullboard Posts