written by reader Opinion on SANDSTORM GOLD (SNDXF)

By aati, July 10, 2012

Hi, I have read the articles and Travis’s comments on Sandstorm Gold. And I am very interested in purchasing some shares of Sandstorm Gold. However at it’s current share price of $8.35 is Sandstorm Gold still a good buy. I know share price alone is not everything, but, If I can get some opinions on this I will really appreciate. Thanks!

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.

guest

12345

This site uses Akismet to reduce spam. Learn how your comment data is processed.

12 Comments
Inline Feedbacks
View all comments
Travis Johnson, Stock Gumshoe
July 11, 2012 12:56 pm

I haven’t bought any lately (or sold), but I still think the value is compelling compared to the big-name royalty stocks — Sandstorm trades for something like 15-20X 2013 earnings while RGLD trades for about 30X 2013 earnings. Sandstorm is much less stable and profitable because they haven’t yet achieved that massive economy of scale, but they should be able to grow much more quickly because it’s easier for them to add new deals that will actually impact near term (next few years) earnings … Royal Gold has to look at much bigger mines if they want to have a meaningful impact on earnings. I’d say Sandstorm is higher risk but a better valuation, which is fair, and I think there’s a possibility of a NY listing within the next year that might help — along with new streams coming online to boost revenue — to close the valuation gap.

Sandstorm will most likely fall harder than Royal Gold if the price of gold takes a substantial hit, but I stand by my opinion that Sandstorm will do very well and grow substantially in the coming years as long as gold doesn’t dip below $1,200-$1.300 for very long. I continue to have substantial positions in both equity and warrants for Sandstorm Gold, I don’t currently own Royal Gold or the other big royalty/streaming stocks.

Add a Topic
210
Add a Topic
210
Add a Topic
210
👍 15858
Steve in Thunder Bay
Steve in Thunder Bay
Irregular
Reply to  Travis Johnson, Stock Gumshoe
July 12, 2012 4:15 pm

Hi Travis. This was the first stock I bought on your recommendation and made some good money before exiting at the beginning of the downturn in gold. I am back in again because Sandstorm gold is supposed to be listed on the NYSE soon, which should help its stock. In fact it is up today while gold is down a bit. I’m not wedded to any stock permanently, but this will be be a hold for at least the next while, more so if Ben turns on the printing machines again.
Thanks for providing a fine service for investors, putting a lot of investment ideas under a critical microscope and unearthing some simple truths.

Add a Topic
5971
Add a Topic
210
Add a Topic
210
Neil M Campbell
Neil M Campbell
Member
July 11, 2012 5:19 pm

I am also a true believer in the SNDXF story. I sold recently at 80% profit and used the “houses” money to short gold (GLL) I think we will see 1400’s before the next leg up.
If all works I will repurchase SNDXF all in!
Forgot to mention this is my grandkids inheritance that I am playing with!

Add a Topic
899
Add a Topic
210
Venture Shadow
Venture Shadow
Guest
July 12, 2012 5:04 pm

Do you really believe you will be able to buy gold after it has established a floor and is rising at a price less than it is now? I think the gold market will be crowded with panic buyers at that time and gold will hit $1700 in a heartbeat. It will probably go higher than that and then fall and oscillate up and down, with a floor higher than the current price. The story was in todays WSJ page one “Fed Reserve Officials sent new signals they are seriously considering more actions to bolster…”

It seems wise to buy before the Fed acts. When will they act? Of course we don’t know. The gamble is how long to wait. What will cause waiting too long? Answer: Being greedy.

Add a Topic
210
Add a Topic
210
Add a Topic
210
cooleenman
cooleenman
Member
July 16, 2012 4:20 am

hi travis, I bought sandstorm some months ago at 2.26 ,watched it lose ground and sold. Next time I looked it was over 8!! darn. Perhaps I will give it another try. I enjoy your blogs and feel there is a lot of common sense in them. charles o’malley

👍 1
profmad
profmad
Irregular
Reply to  cooleenman
July 16, 2012 3:33 pm

Don’t feel bad. In the meantime it underwent a reverse 5:1 split, so you’re probably still ahead of the game.

Jack
Member
Reply to  profmad
July 16, 2012 4:47 pm

Just salient pragmatism thoughts from a long time investor/trader: A reverse stock split ia almost never beneficial to average shareholders, and if this action is instituted by management it is a large red flag to distance oneself from that snare of likely adversity.

Add a Topic
5971
flyfisher
Irregular
Reply to  Jack
July 21, 2012 1:37 am

Jack, you don’t know anything about Sandstorm Gold: in most cases what you said is true, but not this time. They had a reverse split on May 9th and the stock price is doing fine. Why? Because it is a money making machine and it will be listed on a major exchange in the U.S. before October. They put out a NR today (Friday), announcing the company would be releasing their 2nd quarter results on July 26. You may have time to catch this train early Monday morning, but you better hurry.

Add a Topic
210
Add a Topic
5971
Rufus Caldwell
Member
February 4, 2013 1:35 pm

I was hoping to get some info on Gold Stock Adviser, especially WRPSF . They are part of the Newsmax group and seem to provide a good service for investing in gold. Can you tell me anything ?

Add a Topic
210
Add a Topic
5971
Add a Topic
1865
norman cartmell
Member
April 21, 2013 2:42 pm

This stock could go lower if the banks keep manipulating gold.

Add a Topic
5971
Add a Topic
210

We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies.

More Info