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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
Comment by seanyboyon Mar 31, 2014 2:52pm
529 Views
Post# 22391485

RE:RE:sabina

RE:RE:sabina
If Hackett goes ahead the stream alone is worth comfortably more than SBB's enterprise value, and you can throw in SBB's substantial treasury and Back River for free.  If it doesn't, SBB has to go it alone with infrastructure in that area which is not possible for many years if ever. It's either both or neither.

IMO the investment thesis here would be that if metal prices move enough to give Hackett the green light, SBB has both the stream and another large resource with huge infrastructure synergies with Hackett.  If you think these mines will actually be built at some point, why divest now when valuations are near multi-year lows, and throw away the strong leverage to PM prices?  

The last presentation emphasizes a the low cap-ex / preserve cash strategy while pushing forward on engineering and permitting.  My sense is that SBB is not contemplating actually building the mine anytime soon - an important turnaround from Denver last year. 

Shareholders can disagree about corporate strategy, but to me management is doing the right thing - holding tight in a position of financial strength and waiting for better business conditions. 


Bullboard Posts