is...probably trying to buy a stock
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I definitely should have looked into these right when you posted them. I saved the post, but never looked back at it. Some of these have done very well! Well done checkmate.
How does a company generate $5 MM a year in revenues with only $27k in PP&E? I usually focus on really capital intensive industries, so this not something I'm used to.
You are kidding right?
Not sure if you understand this, but I thought I might ask you as well as others that might know more about Canadian accounting about this press release. I've been keeping an an eye on AUG-TO (which is getting crushed all of a sudden this afternoon). If you could help explain the concept of flow through shares to me, I'd appreciate it. I also don't understand what the $5.01 price is all about either.
Vancouver, British Columbia – January 24, 2017 – Auryn Resources Inc. (TSX: AUG, OTCQX: GGTCF) (“Auryn” or the “Company”) is pleased to announce that it has completed the equity placement with Goldcorp Inc. (“Goldcorp”) (TSX:G, NYSE:GG), as well as the equity placement of flow-through common shares, announced on January 9, 2017. The Company has received gross proceeds of C$41,172,311.46 by issuing 9,542,402 common shares, of which an aggregate of 4,590,818 shares were issued as flow-through common shares sold by a syndicate of agents led by Beacon Securities Limited and including Echelon Wealth Partners Inc., Haywood Securities Inc. and PI Financial Corp. Goldcorp now owns a 12.5% interest in the outstanding common shares of the Company and has the right to maintain this percentage interest subject to certain obligations in an Investor Rights and Obligations Agreement.
Of the shares ultimately purchased by Goldcorp, 4,590,818 were first issued to third party investors as flow-through shares at a price C$5.01 per share and the remaining 4,951,584 common shares were purchased directly by Goldcorp at a price of C$3.67 per share. Goldcorp’s total investment in Auryn amounted to C$35,020,615.34.
The net proceeds of the placements will be used to fund exploration on Auryn’s mineral projects. All securities issued in connection with the placement are subject to a four-month hold period.
Shawn Wallace, President and CEO, commented that “We are very pleased to have completed this financing with Goldcorp as our strategic investor. With the necessary financial resources at our disposal, our management and technical teams will now focus on conducting exploration and drilling across our entire portfolio in order to create value through discovery for our stakeholders and shareholders.”
LUVU...It's fairly interesting, but have you looked into the loans they've been taking out? They're making someone very rich (20% interest rates)! Something seems pretty fishy! It sounds like a scam to me.
Sold the last of my TECK yesterday just before the close at $26.03. TECK was a monster for me. I bought at a little over $4 last year and sold on the way up when it was a 3-bagger, 5-bagger, and now 6-bagger. It's hard to let a darling like this one go, but I just think the mining world is getting a little crazy right now.
I agree hweb. Shorting cult stocks can be a dangerous game. It's really hard to figure out what is going to drive the stock lower. I'm sure R59 will make a killing though.
Continued to raise cash and lock in gains today. Sold my LUN.to at 8.03. Canadian copper stocks have been on fire!
Well...TIXC has already lost circue de soliel so that negative catalyst has already happened.
hweb...
I don't recall a lot of discussion on pink sheet stocks in the past. What gets you comfortable with this one? Yes is has a sweet dividend, but Vegas (any company in Vegas), pink sheets, and history of declining sales have me concerned.
Sold all of my TECK in one account today (still hold a small position in another account for now). It's been a great run, but I'm raising cash at this point on this big day for mining.
I'm absolutely crushing it today because I'm so heavily invested in mining (most non-precious metals). I have 13 out of 27 stocks are are up at least 5% today. Overall, my portfolio I focus the most time on is up 3.8%. Days like this scare me to death!
Buying some K here at $72.42. I'm worried about a market pullback, and this is a safe place to be. K is down from its 52 week high of $87, it's a consumer staple, and it pays a ~3% dividend yield. Supposedly there is some talk that it could be an acquisition candidate (at $25 billion market cap, I assume that it's too big to get taken out).
I'm not going to get rich off of it, but I think I can make 15%-20% over the next year on it. I'm buying a 5% position.
Does anybody use Google Finance portfolios? I used to use Yahoo, but when they quit supporting the portfolio feature, I had to find an alternative. I keep up with a fictional portfolio through a portfolio in Google finance and I've been having problems lately. Oftentimes when I sell a stock it decreases the cash value instead of increasing it. Anybody else experiencing this?
Sold covered calls (July) on the rest of my HBM today on another good day. Locks me into an $8.50 sell price.
Sold my ATI today on the big pop. Yes, it was a great quarter, and I think things should continue to get better, but management always seems to mess things up so I'm taking my 61% gain and walking. I'll wait for a better entry point. Continuing to raise cash in my accounts.
I agree...my gut tells me we're going to get a chance for better prices soon. I think this is especially true in my world (natural resource stocks). Everything has been going straight up lately.
Ew gross!!
I think we're in for a pullback in gold mining shares. Many of the big guys (SLW, GG, ABX, NGD, etc.) are bumping up against the 200 day with RSIs around 70. I'm no expert trader, but I'm looking for pullbacks from here.
Anybody have any small cap producing miners that they like? Ideally, I'm willing to take some upside off of the table by having at least 1 of 2 things, a great balance sheet or low costs. I prefer base metals over precious, but I'm getting less biased on this these days. I'm also not scared of bulk producers either (coal, iron ore, etc.).
Sold about 40% of my HBM today at $7.15. It was up ~90% from my buy in September, and copper stocks have been very hot lately. I'm getting nervous about the market here and many of these base metals stocks so I've been lightening up on some of them. I sold ~40% of my CPPMF about 2 weeks ago on the double since October.
In my opinion, people are too bullish on copper right now, and I think we're ripe for a pullback.
I'm also going through old kept messages that I have saved from years ago. These are two of my favorites:
1) This is still true even after 9 years!
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=27770046
2) Just found out about the Lent suicide tonight when I looked back at this...it's really sad. The guy was super smart (as evidenced by this post)!
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=22265553
I'm feeling very reflective on this weekend evening. So now that I'm back after a long time away, why did everyone over to this board from the WM Motherboard?
hweb, you've mentioned that you've spoken with NAII management in the past, correct? Do you normally talk to the CFO? I'm looking to set up a call and want to make sure I'm talking to the right guy.
Totally agree with the thoughts here...CCJ seems like the better option to me.
CCJ with the big bounce today. My limit buy yesterday is almost back to even.
CCJ
I agree there is still time before the turn but I think initiating a position in the 10s with the intention of doubling up or tripling up if the stock returned to the lows is a good move. I think the stock can go to 30ish when the market turns.
CCJ
The stock is getting crushed today (down 17%). The company pre-released earnings saying they are going to take a $200 MM writedown on some assets and they are reducing production at Inkai (their Kazakhstan JV). The Inkai news shouldn't be new to anyone since the Kazakhs said last week that they are going to cut production 10%, but apparently investors thought they were going to cut production at all but the CCJ JV mine (I know of at least one very large institutional investor that thought this way).
I bought some more in one of my accounts this morning (4.5% position) when a limit order hit in the 11.90s (bummer!). It is also the 2nd largest position in my resources investment portfolio. I still think the the Kazakhstan cuts are very big news for the uranium story and likely pulled the bottom in this market ahead by ~2 years to 2018-2019.
The company generated ~$315 MM in free cash flow during 3Q (3Q and 4Q are typically the best cash flow quarters I believe) on just a $4.3 billion market cap.
Concerns from here include the possibility of cutting the dividend (~4% dividend yield), zombie uranium producers continuing to hang on (Paladin is a good example), and time (when will the uranium market finally turn.
It was enough to pull my order. If they are reducing the prices of Levo then that just goes to prove the point that Citron's report may be in its early stages of being correct.
SSK, you are definitely the expert here and not me. I was just looking to take advantage of the stock killed. Once I looked into the reason further, I've decided to move on and find a cleaner story.
Lannett slumps after Citron sees drug pricing pressure leading to bankruptcy Lannett (LCI) will violate its debt covenants if "even modest price cuts hit either of Lannett's cash cow drugs," claims Andrew Left's Citron Research in new critical report. A "series of lawsuits against Lannett that Wall Street has completely overlooked," along with the Trump administration's push to confront drug price raises, leave a "a clear path to 0 for the equity of Lannett," claims the short seller, who has previously been critical of Valeant (VRX) and Mallinckrodt (MNK). Shares of Lannett are down 6.4% to $19 after Citron's report was posted to its website.
I tried to get some LCI as well, but you beat me to it. I couldn't get my order in fast enough. Someone wanted to dump some shares fast!
As of right now, I think NAII can earn $1.77 this year, but best case scenario is that they get 10x PE on it. I estimate they'll earn ~$1.45 in fiscal 2018 when the beta-alamine patent expires.
This could always change with more information, but this is where I'm at on NAII right now. Even on lower 2018 earnings, the stock is cheap. If they can do a better job turning earnings into cash, that'll also help the story because then they could buy back some shares (as others have mentioned before they should have been buying back Borg's shares now though).
I joined the NAII party yesterday with a small (2%) position at 11.90. There are definitely things that I like:
-Expect sales to grow 20%-30% in fiscal 2017 (ends in June)
-Beta-alanine sales grew 26% YoY ($6.7 MM) in 3Q due to new customers, etc. (this is much higher margin)
-Balance sheet with $18 MM in cash
-SG&A growing far slower than sales (it would be nice if it was slower than Beta-alanine though)
There are also things I'm concerned about though and will watch. I may give the company a quick call to see if I can get to the bottom of these things:
-Concerned about inventories. They generated $2.5 MM in 3Q earnings but burned $1.8 million in cash.
-What’s happened with the Creative Compounds lawsuit? Aren’t you concerned about all of these lawsuits? Is litigation expense going to be a big problem going forward?
-How important is this patent that is going to be expiring in August?
DSX (continued)...
I own about a 10% position (my cost is $2.58) in one of my larger accounts (and very small positions in two others). I was hoping to get a chance to add some more to those small positions and bring it to the board in the $2s but the stock has been really strong over the last week or two.
R59...as I mentioned before, I'm a big fan of dry bulk shipping. I personally like DSX. I believe it is a little better run shipper and doesn't have some of the funny stuff of NMM.
The industry has been absolutely decimated since the financial crisis. DSX is the best run company in the industry and will be the last survivor in an industry that has seen tons and tons of bankruptcies.
The company has been doing all the right things. They just reduced the price of their two remaining newbuild vessels. They received a full refund for a previously cancelled newbuild. They are cash preservation mode, but they still have some dry powder if they get more comfortable with the outlook. DSX is one of the VERY few dry bulk companies that buys vessels when prices are low (instead of chasing vessels when the market is hot).
The company is burning cash (just like every other dry bulk company at the moment). 3Q cash burn was $6 MM (vs. $108 MM in cash on the balance sheet).
Dry bulk is incredibly volatile and not for the faint of heart. I think the stock can get close to $10 if we see a real rebound in Chinese commodity demand. Because the company signs 1-2 time charters for all of their contracts, their earnings are probably going to lag an improvement in the BDI, but the multiple should expand significantly. I know the management team well, and I think they will do the right thing for shareholders.
That would be my guess as well. The only other thing I could think of is that someone near one of their projects drilled a great hole or something.
SSK...sorry for the rookie question here, but is there like a weekly update on the performance of each person's picks and who is doing the best?
Matt...the uranium move is pretty explainable. Kazakhstan announced they were shutting down 10% of its production. That will result in 3% of the global supply coming out of the market. It's very good news for the industry, and will probably result in the equilibrium point in the market moving from 2020-2021 to 2018-2019 assuming that the actually implement the cuts.
http://www.mining.com/worlds-top-uranium-producer-kazakhstan-to-cut-output-by-10/
Never punish yourself for making money SSK!
RN, that is not an answer to the question. Just because a certain level of receivables and inventories passes your eye test doesn't make it fine. Inventories grew 65% in fiscal 16 vs. 15 levels while sales grew 43%. In 1Q, inventories rose 12% vs. a 5% decline in sales. Ballooning inventories can be an early sign of problems.
If you don't have any answer to the questions, that's fine, just let someone else answer them.