Friday File — Inflation? Buy “Trophies”

by Travis Johnson, Stock Gumshoe | July 22, 2011 3:14 pm

Updated look at an old favorite being teased today by Matt Badiali

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Source URL: https://www.stockgumshoe.com/reviews/s-a-resource-report/friday-file-inflation-buy-trophies/


8 responses to “Friday File — Inflation? Buy “Trophies””

  1. mpalmer says:

    Travis

    For the record, there are four (4) “trophy” companies mentioned by Matt Badiali and yes Sprott is one of them.

  2. birddog says:

    Hi Travis,

    Have you done any write ups on Sprott Power, i am now starting to accumulate this company as it is trading below book value and they should be ramping up revenue streams within the year. just wondering if you have done a write up on them as yet.

  3. DonStar says:

    Graham,

    Have you read the following:

    http://www.reuters.com/article/2011/07/21/us-energy-green-idUSTRE76K6HE20110721?feedType=RSS&feedName=GCA-GreenBusiness&rpc=43

    Since it is a long, Reuters, link I suggest you copy and paste rather than trying to click on the above,

  4. gwilliamoakley says:

    Hi Travis,

    I total enjoy reading your posts-keep up the great work.
    Could /would you be able to tell me if Manas petroleum Corp has some “Dodgey ” people involved with the company please?
    I have shares in that company and I think you do as well.

    Regards tobby

  5. brenda says:

    Looks like I missed a piece of pretty big news: Union Agriculture has filed for a NY IPO (at UAGR, likely to go through on Wednesday this week). If they get the valuation they want, which would imply a market cap of $717 million per articles I’ve seen, that means I’m undervaluing Sprott’s shares by roughly $20 million. That’s assuming the market likes UAGR, which isn’t guaranteed — like Adecoagro (http://stockgumshoe.com/2011/07/the-holy-grail-of-agriculture-investing.html) it’s likely to look expensive based on earnings, the companies have some similarities (though they’re not directly comparable — different assets and countries) and UAGR is about half the size, so we might see how a Sprott pick does compared to a Soros pick.

    Having a major holding become publicly traded increases my confidence in valuation, since you get to see how other investors value an asset, so if the IPO goes through as planned and doesn’t collapse or spike in price, that would bring up my per share valuation as covered in the article above by about 20 cents — so the base case would be C$4.45 and the top range of “easily justifiable” buying would be C$5.20, which today is about US$5.50. That doesn’t leave a huge margin of safety, but it also doesn’t assign much value to future prospects, or management acumen, or to One Earth Farms or Waseca.

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