Sandstorm Metals & Energy Ltd STTYF

bad timing

[bsea]

i had a small position in smd until they announced the consolidation -now was not the time ,they almost never work but the markets have been so negative ,it certainly isnt going to work now.this is going 20 - 40% lower and we'll need good world news to start the venture back up again almost no one is buying now .i may jump back somewhere down the road.GLTALs

[damag]

Why is everyone saying consolidations never work? Are there high administritave costs to get this done or something? I'm sincerly wondering because I just don't see why it matters if I have 100 shares worth $.35 or 10 shares worth $3.5 each... in the end I still have $35 worth of stock and I still own the same percentage of the company.   And as was mentioned in the call, this move

[bob4977]

Not everyone is saying consolidations do not work. However my perspective is that consolidations do not work well when the company has negative momentum. SND has negative momentum right now. Therefore I predict that the consolidation will not be pretty unless the momentum changes. As far as institutions only buying stocks above a certain price most of these institutions only buy a stock that is

[Thundersole]

Damag, Depends why the company is consolidating. Usually a company is in a down trend and are forced to consolidate their shares to stay listed on a stock exchange, the company usually continues in that down trend after the consolidation.  This is not necessarily the case with SND, as SND is not consolidating to stay listed as the venture exchange has no price requirements. SND may want

[elmothefearless]

Agreed, SMD has been in dire straits for some time, ever since the Atac shares took a plunge they have been in a downtrend.  Thanks for weighing in about the decimiating implications of a stock consolidation, a little bit of fortune telling and voodoo is always welcome.

[zentrarianNZ]

"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

[damag]

Usually a company is in a down trend and are forced to consolidate their shares to stay listed on a stock exchange, the company usually continues in that down trend after the consolidation. Considering that the delisting case does not apply here, I can't tell if you are implying that a consolidation would have an effect on the continuation of the downtrend; or if you are aggreeing with me

[damag]

Most of these same institutions that will not buy stocks under $1 also will not buy stocks under a market cap of $250 million. Well I guess it would mostly be the small-cap and micro-cap funds, but that's still something.

[damag]

I like that the management has been honest with writing down projects that are worthless. Many other companies would try to keep those assets on the balance sheet for as long as they possibly could.

[Thundersole]

Damag, The point I was trying to make is that SND is not being forced to make a share consolidation. They hopefully have a plan that requires a consolidation, like an uplisting.

[TriN2Learn]

@Thundersole: "The point I was trying to make is that SND is not being forced to make a share consolidation. They hopefully have a plan that requires a consolidation, like an uplisting." I would certainly think so.  And just maybe, NW would have talked to potential institutional investors to see what they thought about the idea.  Just a thought.  TriN  

[elmothefearless]

Interesting day today!  Not sure about you guys but I found today relatively amusing, in light of the fact the hit my portfolio took.  Nice to see we had a little recovery by the end of the day.  Maybe someone figured out we are in natural gas and copper, arguably two of the strongest commodities right now.     I have some random thoughts about the markets.  Figure I&

[Luxor63]

This post has been removed in accordance with Community Policy

[zentrarianNZ]

Great post, Elmo. Being up 10-15% after 3 years sounds depressing, but considering that a lot of people who have been patiently averaging in over that time are underwater across the board - even me somewhat at this point, and I've been very cautious in my buying - it's really not that bad. Hang in there, our day will come. I've felt all along that the super-bullish forecasts for SND

[jsbarnby]

Hang in there Elmo. We will come through this craze someday. As I have mentioned before SND and SSL are the perfect stocks to hold to get commodity exposure but I have found a lot of other great stocks. Some holdings that I have include: CSU - Unbelievably profitable technology company. 4% dividend. Nobody has heard of these guys (they are kind of the opposite of Sandstorm in that regard). PLB

[mac9583]

I am unable to find CSU. Maybe this is why nobody has heard of it.

[thegazelle]

CSU is Constellation Software (CSU.TO).  It is a Jason Donville favourite and has appreciated quite a bit.  I sold it at 117.00 a couple of months or so ago but now it's at 134 or thereabouts.  Definitely has had a nice run in the past year or so.