SILVER WHEATON CORP. T.SLW

Is XBR going to be the next Silver Wheaton ? Maybe

[ValueTraderVic]

In July 2003, Silver Wheaton was trading at 10 cents a share.  A year later, the stock was trading at $2 and eventually reached a high of over $42 several years later.  XBR is an upo and coming streaming/royalty company in the mining sector. They are basically duplicating the Silver Wheaton business model which has been clearly a big success.  XBR announced a deal on Friday that it is acquiring a company with a pipeline of streams/royalty deals having annual cash flow of US$15 million ($20 million Canadian).  XBR is now trading under a quarter, but not for long !  It remains to be seen how successful they are in duplicating in Silver Whaton model but the fact is that the markets love streaming/royalty stocks (average cash flow multiple is over 20) and even if they are moderately successful, the stock will rocket as developments occur.  Investors who bought shares of Silver Wheaton in the early stages made a fortune.  The same will probably be the case for early XBR shareholders.  Isn't it great when history repeats itself.

[Trump4Real]

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[kidl2]

I am one of these early SLW investors and would not touch XBR with a 27' pole. Sedar filings tell all.

[ValueTraderVic]

hey kidl2,  sedar filings don't provide any useful info at this stage.  XBR is basically a shell company that is acquiring a target company with a pipeline of US$15 million in streams/royalties.  Sedar has zero info on the target company at this stage.  It will though when the acquisition by XBR is closed.  But by then, the share price will probably be much higher

[Tommy2tone]

Hi Trader Vic I am a holder of xbr for quite sometime and like the new story of streaming. Do you think 15x is a reasonable guesstimate. One benchmark thrown around has been Franco Nevada based on conversations i've had but of course those guys were the father's of streaming concept long ago. Any input would be appreciated.

[zentrarianNZ]

With a stock price that lost 75% of its value in the bear market, but has already gained over half of it back, I would say that the next Silver Wheaton is goingto be... Silver Wheaton.

[ValueTraderVic]

Hi Tommy2tone.  I agree with you that a 15 times multiple is reasonable now.  The seniors in the streaming/royalty stock sector get higher multiples of course as their holdings are more vast and therefore less risk.  I've seen mulktiples as high as 40-50, which is a little excessive.  One thing no one can dispute is that even the smallest of royalty/streaming stocks is

[Tommy2tone]

Thank you for the input. Happy investing