Smart Investment - mexicomike.ca

[Consalvo]

[Huck]

Hi Coach, Any idea How many shares are about to become free trading? when will this happe?.
Should we look for a pullback?

[coach247]

Regarding the float, here is my research for part of an article I am writing on the company:

"The capital structure of the company is larger than I would like to see, with more than 130 million shares fully diluted, but considering the total resources at the current stage, and the strong potential for a much larger mineral inventory to be proven up as work continues, I still believe the company is cheap.

It’s also worth pointing out that of the roughly 104 million shares in the company outstanding, fully 75 million are held by Kings Minerals NL, a publicly trading entity controlled by the same people (Norm Seckold, Dudley Leitch, etc.) behind Palmarejo Silver & Gold. These people are considered miners in for the long haul, and don’t sell stock. Insiders and institutional investors control about another 23 million shares. This leaves only 6 million shares or so in the free trading public float. So, despite the large number of shares outstanding, they are tightly held. "

cheers!

mike
_________________
Its only a gambling problem if you are losing...

[ProTicker]

Hi Nonrev,

I was happy to JUMP on this onme. I sold off SKV with a 91% gain to buy SNN. I held SKV long to see a buyout some day on Spanish Mountain but when I researched SNN, saw all the gold resource so soon with much more anomolies and grab samples favoring, I jump on it. I had to offer a penny higher above ask just to get filled. while I was changing the order it jumped 4 cents just in those minutes. Paid $1.10 Can .91 USD 10500

On shares out in float. like to see if others post something. All I know at present is
Share Structure

(Effective December 8, 2006)

Authorized Share Capital: Unlimited common, unlimited preference

Shares Issued: 103,773,309
Assigned Options: 5,746,875
Warrants: 21,217,187
Shares Fully Diluted: 130,737,371


From the web site. NOW assuming FD and take away 40% which is GG part = 63.7 million minus 130,737,371 = 67,037,371 I could have already made a mistake if : GG does'nt own 49% of the FD or 130 million shares. But if they do

We have 67,037,371 in SNN Now this was off SNN's web site
Principal Shareholders: (approx. number of shares+options+warrants held and corresponding percentage of fully diluted shares outstanding)

Kings Minerals NL: 85,000,000 (~65% of fully diluted)
Insiders: 8,000,000 (~6% of fully diluted)
Institutions: 28,000,000 (~21% of fully diluted)

http://www.sanantonresourcecor.....on_29.html

92% of SNN's outstanding shares could be tied up and owned by GG or King, institutions, insiders etc. IF SO THAT LEAVES 9,000,000 left for trading!

This thing is starved in the public markets. And that's what we see here trading. More demand than supply. Sounds like PM's and base metals

Cheers loud and clear! ProTicker
_________________
The world is littered with unsustainable debt. And global de-leveraging is still in the early stages.

[nonrev321]

Hi Coach,

I know what you mean about being more aggressive. I’ve noted over the years these opportunities, i.e.low risk/high reward actually based on drill results, deposit potential, management, JV, etc, etc……do not come often.

When they have I’ve either been too slow to enter (OSK) or treated it as just another measured speculation, not giving it the proper weighting in my PF it deserved...missing the rewards.

Not now. When these come up (about once a year from what I've seen) I get overweight. SNN currently represents the largest investment in my PF.

I also sold some others I was happy with to raise cash for SNN. Even though I was happy with other holdings I did not see their potential as being equal to SNN.

Wish I knew exactly how many shares were available in the retail float… I’m guessing somewhere around 5 mil, maybe a bit more… certainly less than 10 mil though.

Do you have any guesstimates?

Good Luck

nonrev

[aladave]

Please disregard my previous message. I'm in the middle of Mardi Gras and trying to see thru a party fog. Completely went past the us trading symbol. For those of you in the US the pink sheet trading symbol is SNTRF.

[coach247]

Hi DonM!

I own shares in all three of the companies you listed. And I have some ECU on the block right now, but not to buy more SNN. I actually sold a few CS this morning to buy the SNN. So to answer your question, I agree that SNN will probably outperform most of the other juniors, and so I too took down some stocks that I like in order to buy SNN. For the me the decision was based on which of my holdings in my PF I have the largest position and paper profits in. Rebalancing my PF to trim profits on one story and build a position in another has worked out for me. And in hindsight, if I had been more aggressive in that approach in the past with MAG, OSK, and SBB just to name a few, I would have ended up much further ahead overall. Since I only own 10K of SNN, the decision was easy for me this time around.

cheers!

mike
_________________
Its only a gambling problem if you are losing...

[DonM]

I would like to add my thanks as well Coach - over the past 2 trading days, I have picked up 7,000 shares - even if your only half right ($5.00 as opposed to your guess that it might hit $10.00) - we'll be laughing.

One question though - based on your projection that SNN might climb all the way to $10.00, I am tempted to sell of some of my holdings in one of these three - SPM, ECU or IPT in order to buy some extra SNN.

The reasoning behind this - although these 3 are also likely to go up in share price - I can't see any one of them providing the rate of return that SNN might provide - what are your thoughts?- which one would you sell or would you retain all 3 no matter what?

[aladave]

I've been trying to find a US trading symbol but so far no luck. Does anyone know if there is a US trading symbol so that I can buy some? Thanks in advance. Dave.

[buster]

Coach, I also wanted to add my sincere thanks for bringing SNN (along with many other winners) to our attention through your posts. I was able to at least get a starter position in the low $1’s before it took off. I’d love to add more too, but I’m trying to wait patiently for some kind of pullback, even though it may never happen.

[ProTicker]

Coach,

I caught your comments off the thread. Know one can say your pumping anything with conduct like that. That's not the first time I've seen you at a disadvantage from your own research. You are a very generous researcher and I may add, very effective. Most all your work has proven out with very, very few exceptions. You have a good handle on fundamentals and long term that's what pays off. I speak for others hereand we are very thankfull for your contributions. This is your deal because I first learned of it through you, by you. Pennies do add up but in SNN's case we are all going to do fine.

ProTicker
_________________
The world is littered with unsustainable debt. And global de-leveraging is still in the early stages.

[coach247]

Well I bought more SNN this morning, just 2000 more shares, and of course it was a bonehead move on my part to post bullish comments the night before I want to buy more shares. I ended up paying $1.54 to get them, but I am confident that SNN is going to $10 and more so a few hundred dollars more to buy this morning is still a bargain if I am right.

cheers!

mike
_________________
Its only a gambling problem if you are losing...

[jouni]

Well Coach, if you are partially correct with your forecast then I think we'll have reason to be pleased.
Jouni

[coach247]

Hi Jouni!

There are three big factors that will be coming into play shortly, each of which will be bullish for SNN, but combined they will amount to a mini perfect storm.

The first is the pending release of the updated resource estimate. Right now, about 11 million gold equivalent ounces are compliant resources with an average grade of .79 g/t. That was based on about 100 drill cores completed in 2005. Since then the number of additional drill cores completed has more than doubled the total data base, on which a new updated resource is being prepared. I would assume that 15 million gold equivalent ounces would represent a conservative target, and since much of the drilling was infill work, I would also expect that the average grade of the deposit will climb closer to that magic 1 g/t gold level. I think SNN will be profitable well below a gram for the average grade, but above a gram puts it in line with GAM's Ocampo and we all know how the market values that one.

The second big factor will be the arrival of analyst coverage. Just as we saw last year with OSK, the effect of positive analyst coverage on a newly listed stock that has a narrow following is that an explosion in price will occur as retail investors and institutional buying compete for the float. This rise in price generates more buying from momo players. The float for SNN is smaller than most people think, because a holding company controls about 75% of the shares and they are not sellers.

The final input that will catapult SNN higher is the gold price itself. I believe we are on the verge of a sprint above $700 for the POG. Last year that was the driving force to propell the entire sector rapidly higher. With the large established resource SNN will be even more attractive with higher gold prices. And the news flow as 2 drills continue working round the clock will keep the spotlight on the company just as new money is looking for a home.

Combined, the effects of all three factors above should generate an impressive rise in the stock. And do not discount the value of the copper in the story. I think the analysts are going to be embarrassed by how strong copper performs this year after so many had written it off.

And a final comment, I hope you are right and SNN sells off when the IPO shares become free trading. I have only a tiny position, 8000 shares, and I would love to get more cheaply if the opportunity presents itself. I will be a buyer nonetheless and will not get my shorts all in a knot if we get the big nasty corrections. My personal opinion is that $10,000 invested in SNN now will be worth about $100,000 in less than 2 years. I made a similar projection in OSK back in march, and it took less than a year to exceed my expectations. I am wrong often enough to keep me honest and humble, but I do expect there will be a lot of people who will have to chase this stock later if they miss it now.

cheers!

mike
_________________
Its only a gambling problem if you are losing...

[ProTicker]

Hey Jouni,

You said " take note of the high share count and look at the metal that is behind the market cap. "

That's one of the main componeents of SNN. 11 million ounces and still more drill reports to come in . It justifies that 130 million Out shares FD. It's very rare to find a deposit like this. Not many around the world. Also Since we have Goldcorp, 49% owenership, this is another big plus. In DD this one I see that GG has the knowledge, pocket book, geo, and engineering to make this happen on a MUCH QUICKER TIME LINE than most other junor projects.

I am long and will possibly add more . Was very happy to get this one from Coach. Thank you again Coach247.

Cheers ProTicker
_________________
The world is littered with unsustainable debt. And global de-leveraging is still in the early stages.