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Sandstorm Metals & Energy Ltd STTYF



GREY:STTYF - Post by User

Comment by zentrarianNZon Apr 15, 2013 4:55am
235 Views
Post# 21253370

RE: RE: bad timing

RE: RE: bad timing

"a little bit of fortune telling and voodoo is always welcome."

Well then, as long as we're sticking needles into little dolls (dolls that look suspiciously like Nolan Watson?)...

I agree that it's dangerous to assume that just because SSL's share consolidation went well, SND's will be equally positive for the share price. But let's not forget that management has stated that it won't contemplate a consolidation until it has a high degree of confidence that institutional investors are ready to come on board if and when the stock is uplisted. I think you can make a reasonable case that the sp wil drop somewhat in the limbo between consolidation and uplisting, but if it drops further after that, I don't think consolidation will be to blame, but rather general market conditions outside of Sandstorm's control.

What the company is trying to do is clean house and reposition itself to resume growth once earnings start to come in from Donner & CSI. A share consolidation is obviously part of that strategy, so even if it causes a short term hit to the sp, maybe its just as well to get it over with sooner rather than later. Even though I suspect SND is going to fall further in the short term regardless, I wouldn't bet against management's decision on consolidation, because they have a lot more information than we do on this issue.

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