by Travis Johnson, Stock Gumshoe | August 22, 2014 4:30 pm
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Source URL: https://www.stockgumshoe.com/2014/08/august-idea-of-the-month/
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Travis,
Interesting article. I have considered investing in Sandstorm Gold but I have not. I have however had fantastic results so far with Eldorado Gold (EGO). They have hit or exceeded their earnings for four quarters in a row and management is solid.
V/R
Tom
Thank you Travis for this good information, and specially for introducing Fosun in HKG. I was looking for good ideas in that region. Regards, Eddy
Wow!!!….. a UK stock that I can actually hold in my tax free acct. Way to go Travis.
Hi Travis….have we done this one and I somehow missed it?
Wealthy Retirement Reader,
If I had only one stock to pick for my portfolio to retire on, this little-known company would be it.
That’s because company scientists have cracked the energy code.
They will soon have a U.S. plant producing enough gasoline to fuel 10 million vehicles a year…
For as little as $1.71 a gallon
Sasol (SSL) — http://www.stockgumshoe.com/reviews/oxford-resource-explorer/real-gasoline-without-oil-for-90-returns/
Travis: also is there a spreadsheet for ideas of the month?…..I see the archives, but nothing that pulls all the data together.
Not exactly, but sort of — I try to maintain a sheet of my rough opinions on these ideas here: http://www.stockgumshoe.com/performance-irregulars-only/
I used to just track every single one, that got ungainly after 40 or so so I tried to divvy it up. Not sure it’s any better, frankly.
Enjoy your family!
One small re-insurance company which is probably too small and speculative (because of its size, track record and bias to resource business) is Till Capital.
http://www.tillcap.com/documents/2014-07-17TillCapital2Pager.pdf
I am a holder by default – they did pick up Americas Bullion for a song, which i thought was smart. Their expertise is in mining largely, so their business development side focuses on creating revenue streams from the resource sector.
Have thought it interesting enough to hold and watch.
Fosun is a well-regarded company in China
Till getting a little more attention these days, in the FP yesterday: http://business.financialpost.com/2014/10/20/a-tale-of-two-bermuda-reinsurers/
They are slowly becoming a real company, but it is hard to build an insurance company from the ground up — their acquisition was probably a smart one to get some skill and size, and it’s good that they’re concentrating on a niche (buying runoff portfolios from companies who leave Canada and re-selling insurance coverage in Canada for foreign companies) but even after that they are so very, very small, and you get pretty good economies of scale with insurance so they have an uphill slog. They’re still really creating the company, so valuations don’t mean much yet — and more than half the book value is tied up in their Americas Bullion Royalty and Golden Predator and related mining assets, I’d like to see them grow the insurance and investment business a lot more before it gets convincing that they can survive more downdraft in the mining assets. Hopefully I’ll remember to take a look at Till if it gets to less than half of book value (it’s around 0.65X book now, I think, though the numbers won’t make sense until they get a couple more quarters in). The market cap is still down around $30 million, so, as you noted, it’s absurdly small.
What stock is Alan Harris referring to?
Lancashire Holdings (LRE in London, LCSHF pink sheets
Hey Travis,
At what price did you buy in for MIL? At 8 bucks what is the discount to book now? Do they own a piece of nat gas wells (and other nat gas assets) coming on line? Is it significant?
Thanks for all the work, not it is time for me to bet back to work… 🙂
Hi Travis – sticking with insurers – One stock you mentioned from one of your conferences – perhaps 2 years ago? – was Atlas Financial. When you first brought it to the Irregulars it was trading around $6.50 I think and is now around $14. Atlas was insuring taxis and perhaps other commercial/industrial vehicles, that which main stream insurers were avoiding. Speaking of avoiding I avoided buying the stock unfortunately although I have paid some attention to it all this while. What is your opinion on it now?
I missed on buying that one as well — has indeed done very well, I think it was a Chris Mayer suggestion from a conference but don’t remember for sure. I’ll have to take a look and see what the valuation is these days or if anything else is going on with them.
I just skimmed through there last two earnings releases (because if I look deeply I will just get confused..). It appears with the Gateway addition thier income is growing and I would guess a full year may come in around 80 or 90 cents. From what I gather it is a pretty steady business and a niche market so perhaps not a lot of competition in their areas? I assume they are using premiums to invest in the same manner that you discuss above. Although I missed it in the 6 range it is off the top now and I am considering a share or two but will await your comments!
Cheers
Hi Travis, can you apply the Thinkolator to the stock mentioned by Alan Harris please? I am looking to buy Solazyme while it is down but this new? stock sounds like it could seriously impact Solazyme’s advantage.
Sasol (SSL) — http://www.stockgumshoe.com/reviews/oxford-resource-explorer/real-gasoline-without-oil-for-90-returns/