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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.
@BSOne reason to stay private as a prospect generator (if you have the right backers who understand cyclicality) is that there are always opportunities, both in up and in down markets. Some of the biggest opportunities come along in deep bear markets, when good projects can get really cheap. Buy low, sell high, not just in the stock markets, but exploration ground as well. There are companies who do this while being public too (eg. $RRI picking up projects in 2015 for very little money). $SMD takes it even further, by buying back their own shares, as well as shares of other companies in the open markets, during the down turn, and selling them again when times are good. But for most public companies it's much harder to take advantage of the opportunities that come along in bad markets, with their share prices as low as they are that raising significant money would not be appreciated by shareholders.
@Fischlaender$SMD@JamesKwantes spot on, special general meeting to vote on Trifecta spinout 21 April. Punchlines: "Strategic will distribute most of these Trifecta common shares to Strategic shareholders on the basis of one Trifecta common share for each four and one-half (4 ½) share of Strategic held. Upon completion of the transaction, Strategic will retain approximately 9.8% of the Trifecta shares then outstanding." Question is, how many shares does SMD keep that would then constitute 9.8% of then issued and out..? I assume somewhere between 2.5 and 4 million giving Trifecta a float of somwhere between 25 to 40 million. And not to forget, $MEK has an option agreement with Trifecta for a Yukon project on which MEK can get up to 10 million Trifecta shares in return for Trifecta earning 75% of the project.
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@JamesKwantes@Wannabeinvestor Another way to hedge higher-risk exploration plays is through more "conservative" plays within the sector. Something like $MOX (cash-flowing royalty) fits the bill or prospect generators such as $SMD$RRI$MRO (just remember conservative is a relative term!)
@JamesKwantesThanks @Excelsior. One quibble - I didn't say I liked White Gold but was pointing out its relatively rich valuation, and saying that either $WGO is overvalued or some of the other plays in #Yukon are undervalued. $SMD one that comes to mind, at these levels and with Trifecta spinout coming. Doesn't mean $WGO won't go higher!
@Excelsior@JamesKwantes - You can't trust the #Media to get anything right. Now even you are a victim of #FakeNews. (lol)
Still a great article they did for you sir, and I'm also a fan of $WGO and $SMD and the #Yukon. Let's not leave out $AXR$AXU in the Yukon either. There are few that are still undervalued.
Lemand@EpsteinResearch Check out $EMX and $ELY and maybe $SMD, which isnt a royalty/streaming company yet, but owns so many properties and has six significant JVs, that it might very well turn into a decent sized royalty/streaming company in the future
@internalauditBesides gold mining companies, what other metal mining company holdings does SMD have? Havent had the chance to look at eaxh one. Price-wise, current and historical, this is looking interesting.
@JamesKwantesFor those who like a tight share structure -- here comes Trifecta Gold with 22M shares out. Will be spun off from $SMD before long, most of the stock (90% plus) distributed to Strategic shareholders on a 4.5-1 basis #Yukon
@Fischlaender@JAmesKwantes$SMD Trifecta has optioned a Yukon property from $MEK ('Squid') where they can earn in 75% for cash, exploration plus up to 10 million Trifecta shares. Also the 750k they got from SMD are not going to last long, I guess they will do a pp for somewhere in between 10-15 Cents for minimum a million. FD including warrants Trifecta would then stand somewhere at 50million, still not bad, but the 22 million figure is really just a snapshot. Just imho though.
@JamesKwantesLate on the #prospectgenerator discussion but $SMD one that does an exceptional job imo. Spinning out Trifecta soon to surface more value. And upside too - have a look at the chart back when $ATC had their big discovery in 2010-11
@JamesKwantes$SMD prospecting and drilling primarily to generate interest for the properties. And yes, it's more of an investment fund. But large land positions around every single Yukon project that the majors have bought into in the past year - $G's Coffee, $AEM and $WGO, $ABX and $ATC (which they own 8% plus of) and Newmont/ $GSR. Also $TG is a chance for retail shareholders to get in on a promising exploreco out of the gate, which doesn't happen too often. Usually that's the realm of insiders and friends. Obviously, I'm long and biased #newbies#hotpick