Buying MoneyGram (MGI)* $6.70 for the Ten Under $10 holdings. In related accounts we bought early on Friday at $7.07. We will continue to buy into shares of MoneyGram. See email LOTM April #42 for our MGI comments. I have a working relationship with a charity in Uganda and do business in Vietnam and use international currency transfers weekly. I have a familiarity with the process and believe MoneyGram has an excellent long-term future in the real-time money transfer business. Link to Finviz news charts and stats. TipRanks Target (linked) is $7.75. We are guessing there will be upgrades in analyst’s perspective.
Recent headline: MoneyGram Delivers All-Time Record High for Transactions in its Direct-to-Consumer Digital Business in March
By MoneyGram Apr 15, 2021
Yes there are lawsuits and violations with big negative headlines for violations with MoneyGram. The fine was $34,400 dollars. The positive news far outweighs the negative and the sell off today presents a buying opportunity in my opinion.
We are Selling a company we hold in the Royalty/Streaming business, Nova Royalty (NOVRF)*. Management is good, but in exploring the industry sector, and where the rally in mining is at (about to happen now) we want a bigger, more established company that investors feel is a here and now beneficiary of rising metal prices. We are taking a loss of 18% on NOVRF (About $184 of $999 invested). NOVA will be a fine company, but we feel the need to fit the shoe to the foot, so to say. The rally is coming, and we want a position that participates with growing revenue from contracts in place.
Buying Sandstorm (SAND) $7.42 – Sandstorm reported a record quarter. They are big, but not the biggest, royalty / streaming company in the business. They have an excellent reputation. If the prices of precious metals rally between now and through the next four years as we suspect, SAND has the critical mass and reputation to fully participate in the Precious metal and industrial metal rally. Link to Finviz news charts and stats. TipRanks Target (Linked) is $10.65.
Latest SAND Earnings Release:
Sandstorm Gold Royalties Announces Record 2021 First Quarter Results April 29, 2021.
Our current theme is that the explosion of money printing in the USA and globally will result in a long-term inflationary period. In such an environment owning and accumulating a strong royalty company like Sandstorm is worthy of a multi-year position. An appropriate risk management strategy would be to dollar-cost-averaging on price weakness with a trading approach of selling some shares on sharp rallies.
CHARTS:
Three-year weekly charts
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* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
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