I just added shares of Sandstorm Resources to my portfolio, after having it brought to my attention by one persistent reader and digging into the basics, so for today’s Friday File I thought I’d explore this stock for you, getting into some of the detail and the reasons why I bought.
Before that, though, I should just mention a few things in passing:
First, my favorite deepwater driller, Seadrill, is on the verge of getting a NYSE listing (will list at SDRL eventually, as it is in Oslo) — this shouldn’t have a huge impact on the shares, since it’s a large cap company and it was already pretty well known to most investors and traded in fine volume in Oslo, but there’s certainly a chance that this listing will bring new attention to Seadrill and their aggressive posture and high dividend, and it will definitely bring us much more liquidity for getting into and out of shares, and possibly some opportunities to use options.
If past experience holds true, the pink sheets shares that I and many of you hold should get transferred over to the new ticker by your broker. The stock is arguably up a little bit on the news, but oil is also surging and the other big drillers are also up, so it’s hard to say what’s moving the stock — the oil price will continue to be very significant for Seadrill, as will trends in rates for the most capable rigs and the industry’s ability (thanks to Petrobras, in large part) to absorb the big wave of newbuild rigs that are hitting the water of the next year or so, and any corporate actions in the acquisitions space, something John Fredriksen rarely stays away from for too long.
And second, though I still like Berkshire Hathaway very much and consider it a core part of my portfolio, if you were buying in this year to get the spike from the increased liquidity and small-investor enthusiasm after the splitting of the B shares and the inclusion in the S&P 500, you’ve probably got the boost you were going to get. I mentioned this possible bump in the shares back in early January (I can’t take credit, this was obviously a telegraphed move, and I didn’t shout it from the rooftops), and since then ...