Callinan Royalties Corporation CCNMF

Callinan and The Future!

[muffin17]

I have beefed up my position in CAA of late.  Excellent way to play the venture market with less risk.

Been in CAA since b4 the spin off.  Presently the TSX composite is back to its all time highs of 15k+.  Levels not seen since 2008.  On the other hand the TSX venture exchange, in 2008 was just over 3000.  Today that same venture exchange is 1000 points or only 1/3 rd of its 2008 highs.  Over the past 6 years the venture has been decimated as speculative capital dried up after the financial crisis.  The majority of the weaker companies are gone and the stronger companies, the ones with more than a story to tell have survived, but are not thriving by any means.  IMO the Venture exchange represents better value today than it has for over a decade.

The reasons for owning CAA for me are easy.

• Low risk proxy to be invested into higher risk stocks on the venture exchange.
• Mr Roland Butler and an experienced team do the stock picking for CAA getting me higher quality shares and future royalty income without taking the risk directly.
• Management and specifically Mr Butler have significant skin in the game
• $25m bucks in the bank
• Altius, a much larger Royalty company, which Mr Butler co-founded, has bought into CAA in a significant way and IMO signals that Altius likes the investments made by CAA and thier former leader.  I expect that somewhere along the line, Altius will take CAA over.
• Low share float, which is key to fast EPS growth in the future.
• An ongoing share buyback program.
• The cheap shares accumulated over the past couple years should begin to appreciate in value as the venture and commodity cycle recover.  The value of the investments shares held by CAA will go straight to the bottom line of CAA IMO.  
• Finally a nice little 4.4% divvy income while we wait for the Venture exchange to recover.

Commodities are beginning to recover of late, with increased demand coming from a recovering China.  Zinc is on its way, copper price coming back and gold silver poised to rebound nicely into the fall.  

Best of luck to everyone who owns CAA.  I think the short and longer term prospects of CAA are poised to ramp up big time as commodities and the leaner meaner Venture exchange begin to normalize over the coming months and years.

Muff