Quick Note: Buying More Altius

By Travis Johnson, Stock Gumshoe, April 19, 2010

I don’t have anything new or noteworthy to share about Altius Minerals today, but I have promised to update you on my portfolio as changes are made, so I need to let you know that I increased my Altius holdings by about 30% this morning when the shares dipped near $9.50.  I continue to have another buy order in to trigger if the shares drop substantially further (another 10%+), an order I’ll keep in place for at least three days since I’m mentioning it here — and will probably hold until (if) it triggers unless I see the underlying value of the company falling for some unexpected reason. As of the last information I saw, they still have about $6.75 per share in cash and liquid investments, one large royalty that should remain lucrative for many years (Voisey’s Bay, currently marred by a long labor impasse), and several joint ventures (Rambler, Kamistaitussett, Aurora Energy) and royalties on yet-to-be-built mines (Viking Gold, Labrador Iron Ore) that should provide low-risk income if they pan out, along with a dozen or so very early stage exploration targets and joint venture opportunities that are awaiting partners. Few of those partners and joint ventures are equity positions in publicly traded companies, so they’re generally tough to value (you can assign a specific value to Rambler Metals — Altius holds 12 million shares, worth about $6 million currently) The question of what premium to pay over and above their cash on hand is answered only by guessing at the future value of those projects, the value of the cash flow from existing royalties, and the value of the management team that will be investing their cash hoard in new opportunities — $9.60 was the upper limit for me for buying shares right now, and I think that’s still probably a little bit steep, thanks to the increased attention Altius has been getting.

And yes, nothing of significance has happened with Altius since I last wrote about them a month ago.  My last purchase prior to today was in early December.

(adsbygoogle = window.adsbygoogle || []).push({});
Are you getting our free Daily Update
"reveal" emails? If not,
just click here...

(function () { var e = document.createElement('script'); e.type = 'text/javascript'; e.async = true; e.src = ('https:' == document.location.protocol ? 'https' : 'http') + '://btn.createsend1.com/js/sb.min.js?v=3'; e.className = 'createsend-script'; var s ...

Sign Up for a Premium Membership

To view the rest of this article (and to have full access to the rest of our articles), sign up.
Already a member, log in.

Become a member

This site and Stock Gumshoe publications and authors do not offer individual financial, investment, medical or other advice. Nothing on this site should ever be considered to be personal advice, research or an invitation to buy or sell any securities. We also make mistakes and bad decisions sometimes, and our reasoning or data should be checked against trusted sources before they inform your investing decisions. Choices regarding how to invest your money or otherwise manage your life or finances are yours, we share only our analysis and opinion and all authors or commenters are individually responsible for the words and opinions they share here. Please read our important disclaimers and policies. Stock Gumshoe is supported by subscribers and by sponsors and advertisers. Stock Gumshoe's employee authors will disclose holdings in any stock covered at time of publication and will not trade in any stocks written about for at least three days after publication. Please see below for complete disclosure, disclaimer and policy information.

Connect with Travis

website designed by Gravity Switch