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June Idea of the Month: Hydro Horsepower for the WCSB


A couple notes for you before I get into the investment idea that I want to feature this month:

First, thanks to the new folks who have joined this week — quite a few folks came on board in response to the teaser barrage for Sandstorm Gold, which is still being very actively teased by both Peter Krauth and Frank Curzio for their respective newsletters, both of which have access to huge mailing lists for their teaser campaigns. Sandstorm is still a great story, and I’m glad it didn’t shoot up too ridiculously — but it’s also not likely to show great financial results for another few quarters, since their streams are just starting to get up to full commercial production capacity.

I’ll probably end up writing about this one on the free site again eventually because the questions are piling up, but I always wait at least a week (preferably longer) to republish Irregulars articles on the free site — and most of them never get republished, so we’ll see. Absent any more publicity behind the shares, I would be surprised if we don’t see them trickle back down to the $1.10 range — though it’s also possible that the conference call being run by the Stansberry folks on Monday will be a short-term catalyst to move the shares up or down, depending on what exactly they say — all of those new subscribers to Phase 1 already know the stock, but they may learn more in the call about it that makes them want to buy or sell, and the stock is small enough that pretty much anything could move it by at least a few cents.

If you’re interested in the stock, by the way, keep an eye on the warrants (SSL.WT in Canada, SNXXF on the pinks) — they have not bounced as high as the stock, relatively speaking, and they give the right to buy SSL at 60 cents (in US dollars) for almost three years, so buying the warrants at US$0.60 with the stock at US$1.18 means, effectively, that they’re worth US$0.58 today if you exercise them, and you’re paying only two cents for that three year option — and if you think the Loonie will outpace the US Dollar over that time, the warrants give you a little bit of leverage to that. That relatively small premium for the ...

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