Sandstorm Metals & Energy Ltd STTYF

Headwinds vs Tailwinds....

[denisonod]

Yesterday (4/4/12) we got some very good news (approval for the wash plant) and in a weak stock/commodities market, we went down.  We're are not into May yet; however, the soft (especially for the Venture Exchange) May-Jul/Aug period is right around the corner.  Not sure how to figure the warrants into the equation.  We cound use the cash; however, I'd rather see the share count stay around 320-350 million.  On the positive side; (1) Copper is hanging in there; (2) Nat gas is forecasted to be back above $3 next year; and (3) The Rex #1 wash plant news is coming 9-12 months earlier than expected.  There were hopes that approval would come this year, but not even any speculation that the mine would be in commercial production as early as 3Q12.  $5-6 million annual cash flow coming a year earlier than expected has to be extremely positive.  With Rex #1 expected to go commercial in Q3 (and not until 3Q13) and nat gas prices (maybe) recovering somewhat by the late fall, I expect to see the share price in the .50-.60 area late in the year.  Buys in the low .40s and below should be richly rewarded.  IMO, two strategies should work: (1) Simply buy and accumulate as many shares each month as you can or (2) Buy a significant core postion and second position for trading purposes (or until significant news starts to really move the share price).   Disclosure: I own a large position and plan to continue accumulating as funds become available.   GL