Sandstorm Metals & Energy Ltd Com (NASDAQOTH:STTYF.DL)

CAPS Rating: No stars

Recs

0
Player Avatar TMFDeej (99.32) Submitted: 12/27/2012 9:10:10 PM : Outperform Start Price: $5.03 STTYF.DL Score: -106.63

Here's an interesting one. You don't see very many stocks that are fifty cents per share that are ratable here in CAPS. Sandstorm's business model is to provide financing to small natural resource companies, things like natural gas and metals in exchange for the rights to purchase a percentage if their future production at below market rates.I would call this special situation a jockey play. Sandstorm Metals and Energy's CEO Nolan Watson has already had successful stints at Silver Wheaton and Sandstorm Gold. This is a bet that he can do it again. STTYF already trades at a cheap multiple of cash flow and it will likely get cheaper as other deals come online.I've seen this idea several places over the past year, but the inspiration for this pick was a write-up by Roumell Asset Management.Deej

Member Avatar tdonb (26.45) Submitted: 6/25/2013 6:10:38 PM
Recs: 0

Hey, you got this at the pre-reverse split price. Nice for your caps score! Cheers.

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