Wheaton Precious Metals (WPM.TO)

Sold his holdings a couple of months ago and made some very good profits, and doesn’t see a lot of reasons to own at this time. There is inflation in the market, the US$ is moving higher, so there are not a lot of reasons to own precious metals.

Probably the highest quality silver company globally. Just posted an excellent quarter. There is nervousness about their tax issue. The Canadian government is trying to shake down the company, irrespective of the conditions that occurred at the time that the company entered into their arrangements. The government will probably succeed in shaking them down for something. If you believe that silver prices are going higher, which he does, owning the finest silver company in the world probably makes sense.

They reported good numbers. They are a silver exposed royalty story. He is surprised they are down so much despite the rotation out of these stocks. In the back ground, they have a CRA dispute that will go on for a long time, so he is not sure why such a large pull back. Short term you are fighting the headwinds of higher rates.

Sitting right on support at the 150 day moving average. It had a move down, a consolidation, followed by another move down. It is still trading better than 70% of the companies in the S&P over the course of the year. Given the move that we saw on gold early in the year, it is not unreasonable to think that they could consolidate here. This is a company he could own if he wanted to have more exposure to precious metals.

Not a huge fan of materials, energy and commodity sectors. However, he likes this because it is a royalty name. They just share financing costs, and then they take the money off the top and paying it out as a dividend to shareholders. He likes the model, and if you want to get involved in the space, this is a good name to be in.

Prefers Franco Nevada (FNV-T) instead because he likes how they think about allocating capital. When they decide to lend to somebody, or take an interest in something, they are always focused on how they are protected, and what happens if gold doesn’t move.

A very well-managed company. He admires a lot of the royalty companies. The only problem he has is the multiples that people pay for them. They are always looking very, very expensive. Management has been very smart in their acquisitions.

If you own this, he’d be ringing the cash register. It has had a tremendous move. Lagged for a long period of time, and is not the most overvalued in the group, but he has found gold stocks and royalty companies in general have had great moves, and is reflecting something much higher than the gold price.

This is largely a royalty company and he really likes royalty companies. The two in precious metals are Silver Wheaton and Franco Nevada in Canada. They have both been fairly expensive. Has this on his radar. If he can get a dividend stream and long-term exposure to the commodities, that is how he would like to do it, but not at these levels.

The silver rally has been quite amazing. This company as a business model is quite interesting because of their royalty structure. A good way to play precious metals from a risk perspective as opposed to having the operating risks when you actually own the mine. When you get a good commodity run, you want to own the operating leverage, but royalty companies are wonderful places to put your money.

It is touching a 52 week high. They are a royalty structure. That eliminates a lot of the risk. There is a lack of faith from central bankers. Gold and silver prices have moved up. He would wait for it to pull back a bit. It is a play on the price of silver. He is watching this area.

A royalty company, specifically on silver metal streams. Not a cheap stock, but it tends to be a safer metal stock because it is not exposed to mining risks. He likes the name.

The highest quality silver stock in the world. The risk is the greed and larceny of the Canadian government. His suspicion is that they will succeed in shaking the company down, but thinks that is built into the stock. When the shakedown materializes, he suspects there will be some near-term disappointment.

Still has this in his portfolio, but is one that he is looking at possibly redeeming now in order to buy more companies. His company has this as a sector outperform. This is not a producer, but is more on execution and as a finance company. His company has this with a US $20 target.

A royalty and streamer on the silver side. It trades at a discount and there is a temptation to own it. He got out because of a potential CRA judgement that could be worth a $Billion. You don’t want that potential liability hanging over your neck.