I would just like to say that I've been following the SG and SM/E boards for quite a while now. Probably close to a year and a half. I haven't posted anything to either of them. I guess that silence ends today, as we enter into a new era for both companies, especially SG. I just wanted to make my presence known and let everyone know that I like most of what I've seen so far. I am confident that I picked the right two companies to invest in. I own substantially more shares in SM/E than SG. I used to own 2,500 shares in SG, but I cut that stake down to `1,000 when SG first rose above $1.70. Looking back, I should have bought more when the stock retreated back to a low.
What I did instead was buy shares of SM/E. My total stake in SM/E is now about 25,500 shares. I have a goal to get at least 40,000 shares held by year-end and 60,000 shares all together. However, with the rapid pace at which things are moving, I'm afraid that this company may very well do so well and get noticed beforehand that I'll miss the boat. I surely do hope to get more SM/E shares before it becomes a $2 stock and more SG shares before it makes it to $5 and then takes off for the moon with an uplisting.
I find that both as a compliment and a criticism, I cannot find other companies out there that are as well positioned, low-risk and undervalued as both of Nolan Watson's two companies. If anyone can find any deals that are just as great out there, let me know. I am fully on board for this to become like the next Silver Wheaton of Franco-Nevada. I see this as even possibly one day becoming a $20 stock with the brains that our CEO is burning. That very beautiful mind of his!
I have been following this stock and this board for about a year now. I don't post very often but I consider it mandatory reading.
There are so many great posters here and differing opinions are accepted without the usual name calling you find on other boards.
I own both sisters. For now I am fully loaded with SM&E, but I am looking for more SG. I am happy with my position in SG. But would not complain if I picked up some more.
When I rolled over my 401K into an IRA I struggled with which stocks I wanted to buy. I ended up buying both sisters and quite a bit of SPIN.
I believe SPIN will be a better performer in the 1-2 year range than either Sandstorm will be. SPIN earned about $0.07 a share last year. They expect to earn $0.30 to $0.40 a share for 2012. This is without any financing. They are currently working with a financing company to secure $3-$5 million in non-dilutive financing that they will be able to put to use immediately
For every million in financing they expect to add another $0.08 a share to their earnings. Last week the CEO and the COO forfeited 1.5 million share in compensation that they had earned for the stock performance since 2010.
The CEO has a substantial stake in the company and continues to buy stock on the open market. They plan to uplist to a major market this year.
Their business plan is very simple. They buy account receivables from doctors who do procedures related to personal injury cases. They buy the receivables from the doctors at a discount and then collect them as the personal injury cases are decided (6-12 months later).
They typically buy the receivables at 25% of the cost of the procedure. They are then able to recognize 52% of the receivables as gross income for the given quarter. For each center that they operate they are able to generate $200,000 in Gross Revenue.
The currently have 7 centers in FL and TX. They are planning to add another 3 to 7 centers this year WITHOUT any financing. Their current stock price is $1.90. I think by the end of the year it could be in the $5 - $7 range (or more with financing).
I am expecting financing to be announced this month. If that happens I expect a pretty good pop in the stock price.
As with anything, do your own DD. There have been some great discussions and explanations on iHub for this stock. There is currently a stickie that explains their business model much better than I have.
greling...I agree with your ultra-bullish outlook for Sandstorm, of course, but I wouldn't conclude that that means there is nothing else out there worth investing in. For example, I have over half my investment dollars in SG & SM&E, but I also have some SLW and AXU for silver coverage, which you don't get with Sandstorm. (Silver is the most potentially explosive of all commodities, excepting maybe nitroglycerine.)
I also like to keep much smaller amounts in a few speculative trading plays. (Currently only KAM, LMR, and an anonymous biotech, but I've held others as well.) These provide the potential for even greater short term gains, and just as importantly, prevent me from messing around with my core holdings when I'm in the mood for some trading.
I'm confident that you'll do VERY well with Sandstorm, and I wouldn't worry too much about diversification since you get a degree of that automatically with SG and SM&E. And I've also yet to find a stock with the risk-reward profile of either of them, or a manager with the skill and insight of Mr. Watson. But as far as I know just about everybody on this board invests in other companies as well, even if they are all commodity-related. IMO, in light of all the macroeconomic uncertainty, you simply can't have too much diversification, in either you're investment vehicles, entities, or locales.