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Alex B. Gray  

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  • A Way to Play the Unrest in the Middle East [View article]
    Graham,

    I agree there was a better entry point even just a few months ago. The stock has rallied nicely. The stock is up nearly 3% today which is no surprise due to the rally oil and to a lesser extent gold. However, I look at Sprott Resource Corp. as a long-term investment in the overall environment for natural resources and agriculture. Even though the the article focused on the oil and gold holdings, there may be even more long-term value in the agriculture holdings. I think this management team will continue to create value.

    That being said, you bring a good option to the table. I admit I am not currently long Sprott Resource Lending (SILU) but it is on my watch list. It is still transitioning out of the old real estate portfolio which may present a good entry point. Since they have begun funding resource loans, a dividend should be in the future as long as they can find enough quality situations. Thanks for the quality addition to the conversation.
    Feb 22, 2011. 11:10 AM | 2 Likes Like |Link to Comment
  • Looking Through Pink Sheets for Value Investments [View article]
    One of the best resources for OTC securities is the OTC Markets website at www.otcmarkets.com/. However, this is only a starting point as many do not report news or financial information and you have to do a lot more due diligence on these stock which is why many are overlooked. This can mean contacting the company directly to get financial information.

    I hope this helps get you started. I will also be more active in passing along information through my articles.
    Feb 20, 2011. 12:36 PM | Likes Like |Link to Comment
  • Pardee Resources: Coal Play With Bonus Exposure to Marcellus Shale, Timber, Real Estate and Renewable Energy [View article]
    Mr. Value,

    I am not sure I understand your point. Is it that you do not want me or anyone else to write about these companies and share information? If so, I would tend to agree with the response from micmaher in that it may help create a healthier market for the stock.

    There is little doubt that it takes more effort to research companies such as PDER, but I would not refer to them as secretive. They are generally open with information and I believe they only trade on the pink sheets to save the reporting costs and they do not seem to have a desire to raise additional capital. That being said, there are many companies trading on the pink sheets that act more like private companies making the research very challenging.

    I am really only trying to present the readers of Seeking Alpha alternative ideas to those they hear on CNBC and Bloomberg all day long. Truly lazy investors are probably not reading Seeking Alpha and certainly will not be interested in many of the companies that I follow.
    Nov 30, 2010. 04:52 PM | Likes Like |Link to Comment
  • Pardee Resources: Coal Play With Bonus Exposure to Marcellus Shale, Timber, Real Estate and Renewable Energy [View article]
    micmaher,

    Thank you for your interest and your kind words about grayvulture.com. I plan to keep the ideas coming.

    As Tim, mentioned the Pardee website is new. Hopefully they will develop it further and start posting news and financial reports so we can access the information more quickly instead of waiting for them to arrive in the mail. They put out a very nice annual report, but posting to the website would save them some money as well.

    It appears Tim has also been kind enough to scan the most recent annual report. I would certainly take him up on that offer. If you decide to become a shareholder, you will receive annual and quarterly reports.
    Nov 23, 2010. 06:16 PM | Likes Like |Link to Comment
  • Pardee Resources: Coal Play With Bonus Exposure to Marcellus Shale, Timber, Real Estate and Renewable Energy [View article]
    Tim

    Thanks for adding to the conversation. All very good points. I have also been a PDER shareholder dating back to 2005.

    You are right about earnings. They are strong even without the addition of the one-time lease option payment. I would anticipate the 4th quarter will continue to produce strong results.

    Another thing I did not mention is the possible negative earnings impact that could result from the Kings Dome property issue. The case is going to trial. The company still seems confident it will prevail. However, if the decision is unfavorable, the company estimates its exposure to be anywhere from $0 to $6.9 million. Of course, this decision may not come for some time and even the worst case scenario is not detrimental to the company.
    Nov 23, 2010. 06:08 PM | Likes Like |Link to Comment
  • Investment Ideas for Rare Earth, Strategic Metal Exposure [View article]
    pdtor-

    Good observation. Below are some of my thoughts, but I would certainly encourage other readers to throw in on this one if they know the company.

    I think the easiest way to start to understand the discount to the net asset value (NAV) is to break down the assets that are represented.

    As of July 31, 2010

    Assets
    Cash and investments (excluding loans) $0.60
    Loans and accounts receivable $0.23
    Royalty interests on mineral properties - $0.38
    Misc. Assets - $0.01

    Less
    Liabilities - ($0.10)

    NAV as of July 31, 2010 - $1.12

    I believe there are several reasons that the shares trade at a discount to NAV.

    1. Many of their equity investments are in highly speculative private and public companys that may not be producing any revenues and are subject to various mining risks. Many also have low share values that can experience substantial changes in value. Of course this can work to the upside as well, but the market likes stability.

    2. Approximately 1/4 - 1/3 of their investments are in private companies. These private investment values are generally estimated by management and their auditors. It is common for the market to discount the value of private investments.

    3. Approximately $0.11 per share of the NAV is a loan receivable that is the subject of litigation. The market may not be putting any value on that loan until the litigation is settled.

    While the discount does seem extreme, I still need to do additional research on some of the larger holdings in the portfolio to understand how much risk is associated with each investment. Provided the larger holdings do not present too much risk and commodity prices remain strong, it would appear there is some downside protection built into the price. However, I am waiting for a pull back myself as the stock has run up nearly 50% since the beginning of September. Naturally I run the risk of not seeing a pullback, but I have learned my lesson in these smaller equities and like to buy them after pullback assuming a fundamental change does not cause the drop.
    Nov 6, 2010. 04:39 PM | 3 Likes Like |Link to Comment
  • Investment Ideas for Rare Earth, Strategic Metal Exposure [View article]
    torfa80-

    I appreciate the input.

    I did come across CREQF.PK late in my research, but I had not done much research on it prior to publishing the article so I did not want to include it until I knew more about the company.

    I do believe it is worth a much closer look since it does not carry the mining risk, but should benefit from increased use of these materials.
    Nov 5, 2010. 10:10 AM | 1 Like Like |Link to Comment
  • Investment Ideas for Rare Earth, Strategic Metal Exposure [View article]
    Javko-

    I do not believe either company has all of the required permits in order to mine the property. The environment permits could be a major roadblock. Your are right, TC may take its time on this project and they have another 8 years left on their option agreement with USEG.

    I look at USEG as an oil and gas play with the molybdenum and uranium exposure as an added bonus if they ever play out. An investment in USEG would require confidence in the moves they are making in terms of oil and gas. I like what they are doing in the Williston Basin, but would like to see it play out a little further.

    I do believe Mt. Emmons will be mined given the believed size of the deposits, but it could be several years into the future. To your point, the only thing that may stand in way is acquiring the permits.
    Nov 4, 2010. 09:55 AM | 3 Likes Like |Link to Comment
  • 5 Small Telecom Stocks With Big Yields [View article]
    When using net income the Fidelity website is correct and it does not look good. However, telecom companies normally have huge depreciation and amortization expenses that are non-cash. CNSL is no exception. If you back out depreciation and amortization, it brings the payout to down to a more sustainable 40%.
    Oct 19, 2010. 09:33 AM | Likes Like |Link to Comment
  • Taking Stock in Farmland [View article]
    NNUT.PK could be an interesting play on Hawaiian real estate. The farming operations are focused on macadamia orchards. They recently made a large purchase of a farming contract customer which included additional real estate. I would need to learn more about this recent acquisition given the size compared to the market cap of NNUT.PK.
    Oct 18, 2010. 12:46 PM | 1 Like Like |Link to Comment
  • Taking Stock in Farmland [View article]
    Mr. Schober,

    Thanks for the comment. I visited your blog and you have some great information for any investor considering farmland as an investment. I would recommend people give it a read.
    Oct 18, 2010. 12:32 PM | 1 Like Like |Link to Comment
  • Taking Stock in Farmland [View article]
    Global E,

    CRESY is an interesting play to give an investor international exposure to farming. It has significant farm and ranch land holdings in Argentina as well as exposure to Brazil, Bolivia, and Paraguay. It is also diversified into urban real estate through its investment in IRSA (IRS). CRESY has had a nice run over the last few months so it might be wise to look for a pull back, if you are a value investor. There is a small amount of political risk in Argentina, but that would not concern me too much if the price is right.

    CRESY has been on my watch list, but is not included in my article as I was focused on U.S. based farming stocks.
    Oct 18, 2010. 12:29 PM | Likes Like |Link to Comment
  • LJ International: Banking on a Jaded Chinese Bourgeoisie [View article]
    sdfsdf - I do not disagree with your warning, but I want to assure you and the readers that I am making no attempt to pump this stock. I have held my shares for some time now and believe this is a long-term hold for my portfolio. I also agree with you in that potential investors should be careful given the run up in the stock price over the last few days. It may be wise to wait for a pull back.
    Oct 6, 2010. 05:23 PM | Likes Like |Link to Comment
  • Roadkill: Natural Gas Stocks [View article]
    I nearly included Devon (DVN) in my article and probably should have. Devon is an interesting play as the company has been divesting Gulf of Mexico and international assets to focus on onshore domestic. It plans to use this cash to pay down debt and buy back stock. Its primary producing and reserve assets are currently in the Barnett Shale and Mid-Continent. However, the company also has major undeveloped leaseholds in the Rocky Mountain region, the Permian Basin, and the Gulf Coast. In addition the company holds major leases in Canada that are largely undeveloped, including exposure to the Athabasca oil sands. I do not believe the company intends to sell any Canadian assets in the international sales. With the strengthened balance sheet and low stock price, it is definitely worth a look.
    Oct 5, 2010. 11:21 AM | 2 Likes Like |Link to Comment
  • Roadkill: Natural Gas Stocks [View article]
    I am glad you picked up on that ebeng. I wanted to present options for all levels of risk. I tend to specialize in small capitalization companies that are not widely followed as I believe they present appreciation opportunities that the big guys can't deliver. However, I selected Double Eagle and Spindletop because I believe they have the assets to back up the already low stock price. Difficult periods can wipe out most small caps, unless they have good assets.
    Oct 3, 2010. 06:16 PM | 1 Like Like |Link to Comment
COMMENTS STATS
63 Comments
36 Likes