SandStorm Gold Valuation

By valentinoamoro, October 4, 2012

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

Hi Travis,
Looking at Price to cash flows and PE, do you think Sand storm is overvalued?

While they did sign the big deal recently, they’ve had an incredible run up prior to the NYSE listing and an almost parabolic growth after that. Earnings come in Nov. Seems like the stock has already priced in growth.
Was wondering whether waiting till earnings or an adjustment before adding to my position make sense.

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20 Comments on " SandStorm Gold Valuation"

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Travis Johnson, Stock Gumshoe
Admin
4803
October 5, 2012 10:48 am
It has certainly gotten more expensive than it was a few months ago. The valuation gap to big comparables Royal Gold and Franco-Nevada has narrowed but is still there, and I still think SAND has better growth potential and a dialed in hefty growth for the next 2 years, at least. All assuming that gold doesn’t collapse, of course. There could easily be dips and I wouldn’t want to go “all in” at this price, but rising attention could easily drive the shares up still more — Nolan Watson is on Mad Money with Cramer tonight so the boom in… Read more »
Albert
Guest
0
Albert
October 5, 2012 1:06 pm

I have some Sand. Can you explain the term “WARRANTS” and how does it work. Thanks.

Travis Johnson, Stock Gumshoe
Admin
4803
October 5, 2012 3:28 pm

Warrants convey the right to buy stock at a set price before a set expiration date — they’re usually issued during financings as an extra inducement to buyers, and sometimes they get listed and trade publicly, more often in Canada than the U.S.

Sandstorm has three warrant series that trade publicly, the details are different for each and they’re all described on Sandstorm Gold’s website.

drlinks
Member
25
October 7, 2012 8:20 pm

Warrants are essentially MULTI-YEAR OPTIONS, whereby the same option trading rules apply, only you’re talking a MUCH LONGER TIMEFRAME (5+YRS @ MINIMUM I BELIEVE)… That’s the simplest def. I can offer, as WARRANTS confused me for some time until I got the skinny on them myself… HAPPY HUNTING……….Stephen Lindquist

xcernfsi
Member
22
xcernfsi
October 5, 2012 3:59 pm

Doing that right away, free income with the upside of owning the stock at a cheaper price.
On the unlikely event it goes bankrupt I can cover the downside

No, it doesn’t work that way at all. I’d suggest putting pen to paper and calculating the effect of drastic price moves before committing real money to options.

Buddy
Guest
0
October 7, 2012 3:44 pm

No. A put is an option to one’s stock holding. An option is not directly connected with the actual stock.

Cathy
Guest
0
October 7, 2012 4:32 pm
Nolan and crew are way smarter than giving credit just look at who runs Luna Gold and who pulls the strings in politically safe Mexico where you pay to play Mr Luna I wonder if he ever had any Govt jobs and political connections as an tax account, and town hall meetings do not fool your self they pay but they still make money. Seems like everyone who had some SLW pull and they did not burn any bridges when they left they made them stronger. South America is politically safe to,and then go all the way to Canada where… Read more »
bluesharpbob
Irregular
40
October 7, 2012 5:25 pm

Great money making idea-print & sell “Burn Coal Not Flags” bumper stickers. You’ll be rich.

malandro
Irregular
0
malandro
October 7, 2012 6:40 pm

Wow! I’m exhausted now!

Cathy
Guest
0
October 8, 2012 1:48 am

Tell Obama’s mother in law on the third floor at the White House that it is okay for your grandkids live with you we all do but I get the tax payer to help and so do you but my house is better and you pay for my travel and protection I can not think of one thing I pay for what a country it is what your country can do for you that is how we do it in this house just ask my son in law he loves the printing press and China Panda Bear Gold.

aoibhneas
Guest
0
aoibhneas
October 9, 2012 10:56 am

Heavy volume so far today on SAND with no news that I can find. Yahoo doesn’t even have message boards working yet for Sandstorm, either SAND or the Canadian SSL. Maybe it just got ahead of itself? I don’t see much talk about this gold streaming company but do see constant drum beating for SLW, the premiere silver streaming company.

Nancy
Guest
0
Nancy
October 10, 2012 8:58 am

does anyone know about the new penny stock in the same category as Sandstorm, that Stanberry newsletter is touting right now, (Canadian, I believe). They believe it has great potential, but want you to buy their newsletter for $3000 ????

Nancy
Guest
0
Nancy
October 10, 2012 9:05 am

Stansberry is trying to sell the Phase 1 Investor newsletter in order for you to get the information on this Canadian penny stock.

Travis Johnson, Stock Gumshoe
Admin
4803
October 10, 2012 9:20 am

Yes, that’s Sandstorm’s sister company — I wrote about it yesterday here: http://stockgumshoe.com/reviews/phase-1-investor/solving-frank-curzios-the-next-royal-gold-teaser

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