by Travis Johnson, Stock Gumshoe | July 20, 2012 3:29 pm
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Great summary. Two excellent ideas for me to further flesh out. I love your work.
Travis, Can you please elucidate on why you said “If you want to be more hard-asset aggressive: If gold goes to $2,000 or above, Sandstorm Gold (SSL in Canada, SNDXF pink sheets) is a ridiculous bargain;”. I I’ve held positions in Sandstorm in the past have been thinking of getting back in. I have good feelings about gold going forward. Please give us an update.
Just that they’re abundantly profitable now, but if gold shoots substantially higher over the coming year their fixed costs wouldn’t change at all, so it would provide a huge amount of leverage to net income. I’m trying to be a bit cautious with my expectations, but I know a lot of my readers expect very high gold prices and if you’re in that group, I think it’s hard to beat the gold royalty and streaming companies for relatively safe (compared to individual miners) leverage to the gold price.
Looks like we ended up with an excellent report for INVN today, though it’s the reinforcement of their projection of substantial revenue growth for the rest of this year that’s moving the stock more than just the decent earnings report for this just-past quarter. Nintendo is becoming a smaller and smaller part of their revenue mix (was 30%, now reportedly below 15% for this quarter as Android devices continue to be their big end market), but if Nintendo or any of their other non-phone, non-tablet end markets (cameras, remote controls, better than expected new gaming products from Nintendo or others) do surprisingly well that could provide some additional boost. I think Android is enough, though, to make the valuation fair even after today’s 20% bump (though I wouldn’t blame you if you wanted to see if that spike came back in a bit).
Bought some shares on Monday–just wanted to say thanks! What I’m reading here is that I shouldn’t rush out and sell them, as tempting as that is, especially in this bumpy market.
Hi Keith — I’m not likely to give short-term trading advice, and if I did you’d probably be better off ignoring it 🙂 … I don’t think I’d make it as a day trader, even if I didn’t operate under a lot of trading rules for my personal accounts.
I know a lot of folks would take a 20% gain on one day’s trading and just cash it in — that’s not how I generally operate, but that’s just my temperament, you have to do what’s right for your portfolio and your ability to sleep at night. I still like their business and think it’s going in the right direction, the report didn’t change my fundamental feeling about the stock.
Thanks for the reply–I’m not much of a short-term trader either, because I know myself well enough to know that for the 3 or 4 instances in which it would work out great, there are 40 in which I would have failed miserably!
Hi Travis,
thanks again for another great investment idea. Bought INVN on Monday and now am up about $ 3 per share. It is tempting to get out , but i feel like hanging in there for some time. It seems that you did not even get a chance to get in there before the big jump because of the three day ‘no-trading’ rule. Are the three days only referring to business days or do Saturday and Sunday count as well?
It feels wrong that the one person who gives us this great ideas is not allowed to get in on the profit if the idea is that close to a move.
Excellent work Travis, and it is not just fun reading your stuff, but also very profitable. Thanks. Promise I will donate some of those profits to the charitable causes you present aound the end of the year!
OK, I really enjoyed this interaction about these companies but! I have a few questions about other companies. Anyone know about the “virtual banks” Schugerut talks about? and also Motley is talking about a dangerous competitor to Walmart. Any ideas on that?