Lyxr $ Frn Discussion Threads

[mattybuoy] 04/7/2011 19:19

Anyway ...

I'm not going to post the company now but I have, wait for it, found a "lentil" play. Or more formally a "pulse" play.

Why would this be interesting? Well for one thing Canada is somewhat surprisingly the biggest producer of these crops in the world, mostly in the former Soviet Republic of Saskatchewan. Secondly, where meat is scarce pulses are the number one way to get protein into the diet. I think this might be important on a long-term basis.

So, anyone interested? :-)

P.S. I am not a hippy.

[jonno1] 04/7/2011 18:52

I know, but did make me laugh!

[mattybuoy] 04/7/2011 18:19

The management has just changed, they have secured finance and now done this deal. It's not the same beastie anymore.

[mattybuoy] 04/7/2011 17:54

Here is a re-cap which has yet to acquire the usual premium.





There are 45m shares for a $10m market cap.

Today it bought a bunch of highly prospective land at a very cheap price.



One to watch methinks ...

[mattybuoy] 04/7/2011 00:11

Picks and shovels ...



The biggest helicoper operator in Canada, and also now in New Zealand too plus operations in Western Australia. Oil & gas and mining are big customers.

Only listed in January this year. There are 12m shares out and a 4.5% yield. We likes it :-)

[mattybuoy] 01/7/2011 19:34

This is what European Nickel's chart would look like if it was operating in a safe jurisdiction and listed on a market which will buy IGV.



Exploration Orbite is basically doing exactly the self same thing with aluminium clay as ENK is doing with nickel laterites but in Quebec rather than Turkey.

I reckon that even with a market cap of $500m or so it still could be cheap. The potential optionality is massive since alumina production by conventional means is chuffingly expensive, and the company's process basically solves that problem. Even ignoring that though the IGV of their existing resource is at least $50bn, quite possibly even > $100bn so there could be not inconsiderable upside just based on that.

[holism] 30/6/2011 10:16

Hi Matty I see BGM got a mention "RNS on Monday"? Some production and costs sub $500.

[mattybuoy] 30/6/2011 00:04

Open Range is a wet gas producer operating mostly in the same "Deep Basin" areas as the blessed Peyto. It also has a very fast growing fracking services business called Poseidon Concepts, don't ask me to explain what that does though.

Sprott likes it and picked it as a top tip on BNN only this week.

I like the logo ... :-)

69m shares for $350m market cap.

[mattybuoy] 29/6/2011 00:49

Bonjour!

I do like peas (or perhaps that should be "pois") ...





Petrolia owns 18% of the entire oil and gas acreage in Quebec, and is targeting areas of the Utica shale (which apparently can be oily as well as gassy) outside the "main drag" area where Questerre are. This is places like the Gaspe peninsula and on Anticosti Island, and no I don't know where those are either ...

There are 90m FD shares for $175m market cap.

[mattybuoy] 21/6/2011 00:32

If Stock Gumshoe likes it the prospects must be shining indeed!

It's a no-brainer IMO. Both of them.

List of "can't go wrong" royalty/merchant banking type stocks:-

ALS - Altius Minerals
APY - Anglo-Pacific (D)
FNR - 49 North Resources (d)
FNV - Franco-Nevada (D)
FRU - Freehold Royalty (D)
RGL - Royal Gold (D)
SLW - Silver Wheaton (D)
SND - Sandstorm Metals & Energy (d)
SSL - Sandstorm Gold (d)

(D) means there is a dividend.
(d) means there is a stated intention to pay a dividend ASAP.

[jonno1] 20/6/2011 22:34

re Sandstorm

[mattybuoy] 20/6/2011 21:43

As an added bonus I found this ...

One of Sandstorm's "customers" is a new outfit called Terrex Energy (V.TER).

This company is intending to carve out a profitable niche in chemical Enhanced Oil Recovery (EOR), which will surely be a high growth area going forward.

What I particularly like about it is the cheap price. There are 87m shares for a mere $13m market cap, and existing production of over 300 boed.

[mattybuoy] 20/6/2011 21:37

I have now checked out the Sandstorm "royalty company" pair mentioned above.

Conclusion: Beautiful indeed

The CEO Nolan Watson is the former CFO of Silver Wheaton, and he is looking to roll out the streaming model to both the gold (SSL) and energy/metals (SND) spaces. Some good deals have already been struck and there will surely be more to come. Both companies have cash flow at this point if not actual earnings.

It's very early days, and you almost can't go wrong with this business model. There is a lot of promotion going on too, which doesn't hurt.

[mattybuoy] 18/6/2011 16:02

Here's another relatively safe stock.



Penn West is the largest land owner in the WCSB outside the oil sands, and has positions in all the hot plays. It's never going to shoot the lights out with growth, since it already produces over 160,000 bpd, but on the other hand it really ought to be a no-brainer for a takeout by a major. There is a 4.8% gross yield.

[mattybuoy] 17/6/2011 15:17

Not been following it, sorry.

[jonno1] 17/6/2011 14:19

Matt are you still ACG.v, any view on it at this price?

[mattybuoy] 16/6/2011 00:22

Stocks for the Downturn - (4)

Linc Energy

OK it's not Canadian but this company is really hitting some sixes at the moment, selling off huge lumps of Australian coal to the Chindians and then using the resultant cash to take over large swathes of America's moribund but huge stranded coal and oil fields.

Tonight we had this.

LINC ENERGY ACQUIRES CONTROLLING INTEREST IN 'UMIAT' OIL FIELD IN ALASKA, USA (ESTIMATED ORIGINAL OIL IN PLACE ONE BILLION BARRELS)



Not bad for $50m.

[mattybuoy] 15/6/2011 21:54

Stocks for the Downturn - (3)

Freehold Royalty Trust



Previously mentioned some time ago, this relic of the British Empire is not holding up as well as Peyto, but on the other hand it is yielding a safe 8.3% (gross) and is also taking steps to introduce a small amount of growth into its erstwhile business of being a coupon clipper.

[mattybuoy] 15/6/2011 21:29

Stocks for the Downturn - (2)

If like Rick Rule you think volatility will rise to biblical proportions during the coming crisis here is a VIX ETF which may be of interest.



Note: This is based on VIX futures, so the roll charges are horrendous due to unavoidable structural contango, but then who was ever going to "invest" in volatility anyway? It's a trading instrument.

[mattybuoy] 15/6/2011 21:23

Stocks for the Downturn - (1)

Peyto was beautiful today.



It probably won't last, but it should fare less badly than a lot of others due to the intense focus on costs and profitability.

[mattybuoy] 13/6/2011 21:54

Well well ...

A correction in "commodities" is evidently in progress. No-one should be surprised, it's well overdue.

This will be caused by the ever more frantic pathological second-guessing machine that is the US mutual/hedge fund industry exiting the space due to a) the ending of Bernanke's QE2 in about two weeks time and b) Greece.

The latter is much more important, and if a bailout cannot be sorted, though this would be the best thing that could happen for Greece and the other PIIGs, due to contagion the current correction will likely turn into a full-blown crash much like 2008, with banks going bust and/or being bailed out again all over the shop.

If this does happen then when the dust has settled it will be time to go hunting for the next Ventana Gold. Distressed pricing is THE way to get yourself a 300 bagger or two, and at some point after the SHTF gold will become the most popular investment on the planet. I am also hoping that when the banks blow up as an added bonus the ETF industry will go down with them, which would restore the mining stocks to their rightful place in the universe.

Keep these thoughts with you as we descend, if you can ... :-)

All JMHO.

[mattybuoy] 13/6/2011 16:30

Two more royalty/streaming companies:

Sandstorm Gold (V.SSL)
Sandstorm Metals & Energy (V.SND)

Obviously both run by the same people.

I will be having a proper look later.