SGL.TO SCANF.PK

Anybody own SGL? Saw this one ranked highly on Minepedia and added to my watch list. Some rumors swirling...

From the National Post - FP Trading Desk

Scandinavian Minerals soars higher, considered possible takeover target
Shares of Scandinavian Minerals Ltd. (SGL/TSX) continued their strong run of late, shooting up 12% on Friday, a day after Canaccord Adams initiated coverage of the nickel developer. Analyst Orest Wowkodaw rated the company a “buy” with a $14 price target.

“As a predominantly nickel-based developer, Scandinavian Minerals has significant leverage to nickel, which remains our preferred long-term investment vehicle in the base metals complex,” he said in a note to clients.

Mr. Wowkodaw added that consolidation of independent nickel names should indirectly benefit Scandinavian. He considers it a potential takeout candidate.

Here is the longish URL http://communities.canada.com/nationalpost/blogs/tradingdesk/archive/2007/10/12/scandinavian-minerals-soars-higher-considered-possible-takeover-target.aspx

duckncover:
I do own SGL, on the advice of Shelby on the other forum.
It's up 25% in a month, on paper anyway.
I'm hoping that there isn't a bear market for base metals in the next few years. Nickel like copper should be heading back up. Precious metals is a no-brainer however.
That's why we are all here

I too like this stock. Seems to have some serious potential. That is of course assuming the price of Ni and Cu remain high.

Given the money supply growth both in the US and around the world that is probably a given.

Understand that this and the current darling NOT.V are both Ni-centric currently, but am interested in how they compare. SGL has a MC around $200m and NOT around $500m yet SGL has multiple times the resource ore (potential) and is a sure thing.

Would appreciate some educated advice...

Scanmin, how do you see Victory Nickel (NI.to) when you compare management, infrastructure and location, politically speaking? I nearly shorted NOT.v and SGL...well, I don't have a strong opinion, but how does NI.to compare to the stocks you mention?

NI.TO looks good too as a pure NI play all things being equal. Nice NPV but high cap cost and high share float are a little concerning. SGL with PGE has another avenue of revenue although this would be a side play to the main game being Ni and to a lesser extent Cu.

Re management and infrastructure, much as a muchness. Re location, both Canada and Finland are about 15,000 kms away from Australia and although very pretty countries a little too cold for my liking. NOT.V on the other hand seems like it is located in the middle of nowhere. Shorting may well be an option but the article this weekend may well give it a further kick along.

Need to do a little more research however.

Guess I need to know more about SGL, but NI capex is not so high when you consider they are about to start producing concentrate from their Lac Rocher project. This gives them a nice amount of cash to work with. Also, if you take into account the Fracturation sand in Manitoba, you end up with a decent purse. Maybe...Just maybe enough to get excellent, or at least, half decent financing terms, setting hedges a blaze of course. NI will be taking advantage of current nickel prices...Well, if they hold up for a year or so, that is. SGL will not produce until 2010. Whoa...Okay, I know you might be thinking 2009, but all the info I get says, at best, Approx. 2009. From what I have seen of the mining industry, approx. means...Ya right!...never happen. Do you think SGL might be an exception here?

I also believe, personally, that nickel prices will be a lot higher in 2010 than they are now, so I guess that would be a credit to SGL, however NI also has a lot to gain by higher Nickel prices.

BTW...You may be the right guy to ask...What price did Sprott get in at?

Dont know on both counts.

Based on SPs however, I hazard a guess the first chunk was around $5-$6 (refer news release - 10.7% as at end of March). The rest between $5 and $10 (following news release - as at end of June).

Thanks for the info Scanmin!

Truth be known...Ya!, you know, I think SGL will be a profitable investment. I think if I had a shorter term, trader view, if you will; I would own some SGL. I see a very good opportunity...take a good profit from SGL, then buy some safety...Oh, let's say, LBE, NI, CML. Wish you well and keep telling the SGL story. I think it is well worth a diligent inspection.

Totally agree with your approach... Currently sitting on a 8 bagger in NOT (10% of portfolio) and need to lock in profits and then short. It may well be a monster but for the reasons mentioned earlier, it wont come online for a good 10 years ! Maybe a 50:50 split between SGL and NI.

Alternatively there may be a good Au or Ag play that needs my hard earned. Better check the board.

SGL is one of my top positions (together with GGC, TBLC and MVIS).
NPV calculations and future P/E calculations shows nice share appreciation potential even with declining nickel prices.

I would like to buy also some other stocks, unfortunately I am out of cash now.

Looks like SGL could skyrocket today. I see bids in at $10.90

So much for that! Odd bid action to say the least.

14,400 shares asking for $9.0 - until it is cleared, I dont see SGL going up in a hurry. But then you never know if someone in JH forum promotes it in again.

Guys:

I wouldn't short any of the metals stocks. We are in a commodities bull market and the mania phase is about to kick in at any time! I am sure that all good stocks will rise and even some of the bad ones will also gain some lift. I see SGL as a very illiquid stock. Most days it trades a few thousand at most of just a few hundred shares. That will change in time. As far as Noront goes, it is in play! It could do anything and still trades millions of shares per day. It is very liquid now. There are a lot of good stocks that are about to be revalued upward. Most of us will sell too early in the next phase of this bull market. We will go from pennies to tens and hundreds of dollars in stock value. Just the other day Pacific Comox went up 125% in one day! The volume went from zilch to 30 million shares in one day! This is but a prelude of what is coming soon in the metals stocks! This has happened to at least three of my stocks in the last few months! Cream Minerals up over 200% in one day! Noront up over 900% in a few months! Pacific Comox up over 125% in one day! Before this year, I could count only one or two stocks with only more than 100% in a few days/weeks. Get used to it! We are all going to have to get used to seeing undreamed of gains in single days and even a week or less before long! I think that we will all see massive gains before Christmas!

Thanks for the pep-talk! Things have been picking-up in the market but not quite enough to make real metal bugs euphoric. I really hope it's a big leg-up, and not a small one...it's been a long time coming

(We very much appreciate you joining us here. The weather is MUCH better here and information flows freely without getting pounced-on)

I personally won't, but for all you believers in SGL, today may be a chance to buy at much lower prices.

I see $7.66 ask on 10,000 shares