RE:RE:RE:RE:RE:Colossus stream probably died today
Hey Zentrarian and SevenCities: I see both your points. Unfortunately, unlike the vast majority of investors here, I can't afford to lose this money (it could be argued that I probably should not have put some of my kids RESP money on investment, but what's done is done). That being said, the two Sandstorms are the only investments I have in the gold/PM and base metals sector. While it is only a portion of my portfolio, the losses have really set me back. So I understand where SevenCities is coming from - it is very frustrating to see this happening as an investor, particularly when the whole streaming model is supposed to be a bit of an insulator towards sector weakness.
That being said, I am still in this for the same reasons I got into this originally: the excellent management team. I think for SevenCities to say that NW and company are conmen or blowing our money away - that's a bit strong. In being accessible to investors, I have found Nolan Watson to be honest, and have integrity. I have talked with him personally and understand his mindset. That being said, has he made some mistakes? Absolutely? Is he perhaps being too ambitious? Very possible. Has he bit off more than he can chew? Most likely. I too am frustrated by the seemingly assembly line of streams that have had problems. What I can't seem to reconcile is how a guy like NW can help build Silver Wheaton to such a strong position and yet, have so many challenges with SSL and SND. I am in too deep right now to sell at a loss since the loss would be very significant at that point and my wife would probably ring my neck if I took the loss. Of course, in the back of my mind, I think whether I should take the massive loss now rather than to take an incredibly massive loss later. Perhaps it's false hope that the SP will rebound, but in order for that to happen, we need to see some regularity in successful streams. Not sure whether we will see that anytime soon.
I agree, a dividend would attract investors and perhaps would help to ease any indigestion of current investors. But even though I'd wecome a dividend, I don't think that's the right move. I'd rather them use the excess cash to get some new streams going, though the counterargument is that this tactic hasn't exactly been successful thus far, so why not give us the cash. I don't know the answer to this.
I agree with Zentrarian that they have much more on the line than we do, even though I can't take such a significant loss at this point. But if they don't get things in order, they would take a huge hit in their their industry reputation, which would be much more long lasting than any loss that investors would take.