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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@rackerValue investor and Sprott portfolio manager Whitney George unloaded his entire 997,200 share stake in Sprott Inc over the past week according to SEDI:SII, raising roughly $2.5 million in cash. $SII
@rackerSprott Inc $SII: "Are the recent gains in the $gold mining stocks sustainable? If the price of gold holds at current levels, then we believe that current valuations will hold. No doubt, the sector is volatile but the macro drivers supporting gold right now are powerful."
@rackerYellow Brick Road http://www.lexpert.ca/article/yellow-brick-road/
When Sprott Asset Management $SII went after two rival trusts invested in #gold and silver bullion – a sector where any kind of M&A action is rare – it triggered an epic, but ultimately successful, take-over battle
“This one took acrimony to a new level."
@rackerInvest in the best of the best people and assets in the worst of times: Richard Arthur (Rick) Rule IV
Rachel Lee: You yourself are a very successful man. What are your tips for the average investor at this time?
Rick Rule: Simple, simple. Bad markets are great times to buy. Good markets are great times to sell. Always hang out with the best investors. The truth is there is an A team in mining that has been serially successful. When I look back if I had done a lot less work I would be richer, it’s odd. If I had never ever wasted any time at all with a B team manager or a C team manager or a B team deposit or a C management team, if I had just spent my time with the best of the best… and only in bad markets when nobody wanted to show them love, I would have done a lot better.
@FundamentalAnalysisWhilst most people, chase hot stocks for quick gains. For those who want to place capital and get exposure to the wider natural resources sector with a precious metals bias but don't wish to/or simply don't have the time to speculate in individual shares. I think one of the smartest ways to do safely without blowing up your investment capital is buying Sprott Inc. $SII. I've analysed all aspects of the business, and it has now diversified its business to beyond natural resources, yet still retains a natural resource sector focus. As a whole its funds haven't done too well outside the natural resources sector, and the natural resources sector itself in the prior years has gone through a tumultuos period. I could list a whole host of positives and negatives but few things stand out. Sprott Inc has ZERO DEBT. It is paying about 5.5% yield at todays prices. It has about 350million in working capital, of which 130million or so is just sitting in cash, whilst the rest has been invested in mainly natural resources shares via its partnerships, and lent out as loans for interest etc..... with a focus on precious metals. This company basically is a true call options. If you strip out all the working capital. The business itself has a low valuation, yet the business continues to generate positive cashflow. Remember the business gets its money from both management fees [ easy money :) ] and performance fees through its (precious metal trusts, junior metal etf's, investments partnerships, high net worth accounts management etc...) which will all rise as the natural resource sector gets hot and precious metals rise, and if it remains in a lull period the dividend will most likely be maintained as it has done over the prior years given the cash balance. The insiders own over 40% if I have my figures correct so I expect dividends to be maintained, and rick rule I believe owns a substantial portion via his trust with his wife. Full disclosure I've been invested for over a year have an average cost base of 1.95CAD and continue to hold.........................As always do your own due diligence #index#mbgtrends#newbies
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@FundamentalAnalysisCrazy, and on that note this is why I also continue to speculate in companies like $GXU and not just buy and hold $SII. Can't believe the short term retracement, I was looking to add, but thought Nah I can get it cheaper boom up 50% from that point.
@Alan@FundamentalAnalysis- great post there. I'm also invested in $SII for about 2 years now and I'm very happy. I agree with your comments. It is a great business model with low capital costs to grow the business. As commodities increase in value over the next few years, #sprott is perfectly positioned as the premier expert in this field. Plus at the helm are people like #rickrule#ericsprott.
@FundamentalAnalysis@Alan Thanks, yh business model is solid. I've liked having both Sandstorm $SSL and Sprott $SII as the stable core in regards to precious metals exposure, and then I have my company specific positions. Which is typically mixed across optionality, distressed producers and advanced developers and/or explorers and the occasional risk/adjusted punting for fun.