moore_capital54 Posted September 5, 2011 Author Share Posted September 5, 2011 #1 is Altius which I think can become the next Sprott in terms of market cap and prestige- Dalton is a gifted resource investor with a pristine geological background and incredible connections to an area of the world that is geologically exciting. #2 is NRH because I think he can become the next Altius (in terms of market cap and prestige) - No other capital allocator in the business that I know of, with a background in value investing. #3 is Aberdeen because it could become the next PineTree - Not in love with the leadership, but it's definitely not expensive. #4 is PineTree, when the juniors are rising there is no better place to be (100-300% gains are possible) - Personally hate the leadership and his compensation agreement. #5 is Cardero - Lot's of cash and they have already completed one exit for $88mm - Not in love with the leadership here as well (feels old and content) I have to add one more as well. Not sure if any of you know of Ned Goodman but he is truly an amazing investor and great capital allocator. Ned is a Geologist and loves the resource industry, he has made some incredible bets through Dundee, but after having sold his mutual fund business to Scotia he has decided to focus almost entirely on the resource sector. He now has $2B in cash to play with. Dundee Corp. http://www.dundeecorp.com/pdf/2010-Annual-Report.pdf - Great Annual Report Link to comment Share on other sites More sharing options...
moore_capital54 Posted September 5, 2011 Author Share Posted September 5, 2011 Great part of his letter here: Before Jeremy Grantham wrote those words in April 2011, we had already made the decision to bet our future on increasing our resource investment activities to “participate” in his “great fortune” and the24 sale of DundeeWealth was to allow the use of my harvest years to shareholders’ best advantage by working uniquely on what I know and love to do. Thus the new Dundee Corporation, along with its subsidiary, Dundee Capital markets, is uniquely committed to being exposed to those inflationary businesses that compose the hard assets of real estate and resources in general. After the sale of DundeeWealth we emerge as the new Dundee Corporation with a new subsidiary, Dundee Capital Markets, where we have chosen to specialize in those areas of our expertise and where we see growth and safety, over the foreseeable future. Our menu includes resources in general, real estate of all kinds, agriculture and infrastructure. We may waver a bit and get excited about some special situation in other areas, but we intend to be a leading expert in our chosen areas. For the most part, we are playing to our strength because Dundee Corporation for the last twentyͲtwo years was built on those inflation resistant areas of real estate and resources. Resources may scare some people, especially because after soaring for almost ten years and particularly the last few months, the short term thinkers are becoming wary and have been selling in recent days. We have learned to accept volatility in our quest for longer term profits and we do not think it is time to sell.The Wall Street Journal published a recent article that put it best from our viewpoint. To invest in the resource and/or the agricultural sectors remember the required “crucial test” – security. The world’s population is growing much faster than most of us realize. We now host almost 7 billion people in the world, up from 1.6 billion in 1900, and around 2 or 3 billion people away from where we will likely be in 25 or 30 years.Demand for many commodities is expected to rise dramatically, because new supply is not keeping pace and becomes more difficult to find. This becomes more obvious when we study the demographics and wealth creation in most of the world’s emerging countries. There are many such countries with GDP per person less than $1000 US. The World Bank has calculated that for each 10% increase in income per capita the world will enjoy a 10% growth in the use of metals and 6% increase in the use of grains and more than 4% increase in energy Link to comment Share on other sites More sharing options...
Liberty Posted September 5, 2011 Share Posted September 5, 2011 Thanks! Does NRH trades on an exchange? I can't seem to find it, and their generic name makes it hard to Google (if you have a link to their website, that'd be super). I appreciate your ranking and will definitely do more research on those. Link to comment Share on other sites More sharing options...
moore_capital54 Posted September 5, 2011 Author Share Posted September 5, 2011 It trades on the TASE Exchange and the website is www.nrh.co.il Link to comment Share on other sites More sharing options...
motownsf Posted September 5, 2011 Share Posted September 5, 2011 Great part of his letter here: Before Jeremy Grantham wrote those words in April 2011, we had already made the decision to bet our future on increasing our resource investment activities to “participate” in his “great fortune” and the24 sale of DundeeWealth was to allow the use of my harvest years to shareholders’ best advantage by working uniquely on what I know and love to do. Thus the new Dundee Corporation, along with its subsidiary, Dundee Capital markets, is uniquely committed to being exposed to those inflationary businesses that compose the hard assets of real estate and resources in general. After the sale of DundeeWealth we emerge as the new Dundee Corporation with a new subsidiary, Dundee Capital Markets, where we have chosen to specialize in those areas of our expertise and where we see growth and safety, over the foreseeable future. Our menu includes resources in general, real estate of all kinds, agriculture and infrastructure. We may waver a bit and get excited about some special situation in other areas, but we intend to be a leading expert in our chosen areas. For the most part, we are playing to our strength because Dundee Corporation for the last twentyͲtwo years was built on those inflation resistant areas of real estate and resources. Resources may scare some people, especially because after soaring for almost ten years and particularly the last few months, the short term thinkers are becoming wary and have been selling in recent days. We have learned to accept volatility in our quest for longer term profits and we do not think it is time to sell.The Wall Street Journal published a recent article that put it best from our viewpoint. To invest in the resource and/or the agricultural sectors remember the required “crucial test” – security. The world’s population is growing much faster than most of us realize. We now host almost 7 billion people in the world, up from 1.6 billion in 1900, and around 2 or 3 billion people away from where we will likely be in 25 or 30 years.Demand for many commodities is expected to rise dramatically, because new supply is not keeping pace and becomes more difficult to find. This becomes more obvious when we study the demographics and wealth creation in most of the world’s emerging countries. There are many such countries with GDP per person less than $1000 US. The World Bank has calculated that for each 10% increase in income per capita the world will enjoy a 10% growth in the use of metals and 6% increase in the use of grains and more than 4% increase in energy First time I've seen someone mention Dundee Capital Markets here... Link to comment Share on other sites More sharing options...
moore_capital54 Posted September 5, 2011 Author Share Posted September 5, 2011 Dundee Capital not DCM. I hope thats a good thing motown ? :) Link to comment Share on other sites More sharing options...
beerbaron Posted September 5, 2011 Share Posted September 5, 2011 Funny, I was actually reading the Dundee annual report when I saw the quote. Dundee semms like one of the only few financial adequately priced in Canada. Still trying to put a value on the different businesses. BeerBaron Link to comment Share on other sites More sharing options...
Liberty Posted September 6, 2011 Share Posted September 6, 2011 I have to add one more as well. Not sure if any of you know of Ned Goodman but he is truly an amazing investor and great capital allocator. Ned is a Geologist and loves the resource industry, he has made some incredible bets through Dundee, but after having sold his mutual fund business to Scotia he has decided to focus almost entirely on the resource sector. He now has $2B in cash to play with. Dundee Corp. http://www.dundeecorp.com/pdf/2010-Annual-Report.pdf - Great Annual Report I wasn't familiar with him or his company. I had a quick look at TSE:DC.A (that's the right one, correct?) and am reading the 10K now. At first glance it seems pretty cheap, but I haven't looked at everything they own yet so maybe there's a reason. Thanks for pointing them out, I appreciate it! Where would you rank it compared to the list above (with altius #1, etc)? Link to comment Share on other sites More sharing options...
Liberty Posted September 6, 2011 Share Posted September 6, 2011 Another question for you, Moore. What do you think of Cliffs (TSE:CLF)? I'm generally more interested in base metals than precious ones, and it has been on my watchlist (though I still prefer Altius to it specifically, and small caps in general because they are usually less efficiently priced, but if ALS becomes much more expensive and CLF becomes less expensive, I wouldn't mind picking some up). Link to comment Share on other sites More sharing options...
Guest Dazel Posted September 6, 2011 Share Posted September 6, 2011 "I've been reading up on them a bit. Not yet sure what I think, but I'm also curious to know other people's opinions (Dazel, are you reading this?). Edit: Actually, I was looking at SCP. Anyone can shed some light on the corporate structure of Sprott? SII and SCP are totally separate, right?" We looked at scp and sii..........we wanted to buy sii after they took over Rick Rule's Global resource for shares as we knew that Rick Rule would not take the shares unless he thought they were undervalued....that was around $4.5....we missed the boat as gold took off at the same time...and Rick rule booked about $100m plus in profit from the move...SCP does not have near the value of Altius...so we passed. Dazel. Link to comment Share on other sites More sharing options...
Liberty Posted September 12, 2011 Share Posted September 12, 2011 Dundee (DC.A) just announced a pretty big buyback plan, shares are up around 10%. Link to comment Share on other sites More sharing options...
moore_capital54 Posted September 12, 2011 Author Share Posted September 12, 2011 Ned is a genius, one of our larger positions in the resource funds. Link to comment Share on other sites More sharing options...
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