Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Sandstorm Metals & Energy Ltd STTYF



GREY:STTYF - Post by User

Comment by zentrarianNZon Jan 04, 2013 4:57pm
367 Views
Post# 20799823

RE: What If Sandstorm Gold was Aquired

RE: What If Sandstorm Gold was Aquired

thundersole...I really don't think a takeover of Sandstorm Gold is a serious possibility. (I suppose one could foresee a voluntary divestiture of SND's streams, but only in the unlikely event the company got into serious trouble across the board and started to drag down the whole enterprise, in which case, who would buy them?) At any rate, comparing SG's situation to Gold Wheaton is a red herring, and Smedley should know better.

Gold Wheaton was struggling when it was acquired by FNV. It had only three streams (two of them poorly producing), was bringing very little revenue, and was not in a position to grow by acquiring more streams at good value. Management was ready to cash out, and FNV was able to acquire a 35% stake by buying out a single shareholder (Quadra FNX) who was eager to sell. At which point, they decided to go all in.

In contrast, Sandstorm Gold is doing exceedingly well and is much more widely held. Management owns 10% of the company and institutions in total own only about 27%. It's hard to see what a larger company like FNV could bring to the table. In any case, Watson & Awram's entire careers and fortunes are dedicated to building both Sandstorms into multi-billion dollar companies. They certainly would not let go of their dream machine willingly, and a hostile takeover would be very difficult, if not impossible.

BTW, if anyone here has any reliable info about a "poison pill" which would put this issue to rest, please let us know.

<< Previous
Bullboard Posts
Next >>