US newsletters would have you believe this is comparable to the early stages of RGLD. While the business model is comparable the valuation model is false. RGLD had a market cap of $3M near its low. Sandstorm has a market cap over $350 M with over 300 M shares outstanding almost 6 X the outstanding shares of RGLD. It is already one tenth the market cap of RGLD (market cap of $3B.
<It would not surprise me if traders are selling into the newsletter hype bump>
That is always the case, is it not?...That is the obvious purpose of newsletters. (Other than to reap exorbitant subscription fees!)
Of course, most new "investors" who buy on the advice of newsletters do not have the patience to continue holding after the hype subsides and are ever chasing after the Next Big Thing, which creates buying opportunities for stronger hands. (Like most of those here, I presume.)
But I'm happy to get an entry position just below market, because in these perilous times, it doesn't pay to quibble over pennies unless you are a trader!
I personally do not pay attention to email pumps or mailers. What I look at is doing my own DD and look very close at the management team. Another thing to watch is the charts I do not like seeing any candle sticks in any stock as that is a clear sign of a pump and dump. I do not think this will happen to this stock as it has very good management team. I purchased this at .67 per share. I did the same thing in 2002 a company called NTES I bought it at .67 in March of 2006 it did a 4-1 split and I did very well in it. The charts of both are very similar in the early stage. It is hard to find these little gems so Im telling all of you to do your own DD do not rely on some flier or email it causes a candle stick on a stock and it makes it volital to a pump and dump.
When RGLD was selling at its low, it was selling for $0.03. That was when the market cap was only $3 million, as you say. No wonder. Those were some tough times for gold. Most of the time, however, RGLD had a market cap around $500-600 million right before gold started its major rise this decade. It's all relative. I really don't follow your argument.
My arguement is that the newsletters compare Sandstorm's current situation to RGLD's situation when it was selling for several pennies, implying upside potentional of a few orders of magnitude. This is clearly a fabrication. As the previous poster said, any move near term will be due to the newsletters pump. Sandstorm already has a market cap in excess of $300 M already pricing into the stock, the deals they have done thus far.
Certainly. One however needs to understand the pump mentality of the newsletter publishers, Stansberry et al. They're in business to promote their services and simply point out what's happened in the past and maybe it'll happen again, maybe it won't.
Bottom line, Sandstorm should see a reasonable short term pop from the pump, and long term stands to make some impressive gains. Anyone investing should be ecstatic with a double, apoplectic with a 10 bagger and anything more beyond their wildest expectations.
As with all investing, buyer beware. What I enjoyed about Porter's pump in his email teaser was the admonition "only invest the money you can afford to lose". Sage advice you won't get from many other "pumpers".
Disclosure: Long SNDXF as an early believer.