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Wednesday, June 10, 2009

What’s going with Sprott Inc. (SII)?

For a while, I was using Sprott Asset Management (SII), but it’s only Sprott Inc. (SII). Yesterday, I notice that Spott Inc. stocks had fallen under 4$. These days, the stock value had been between 4$ to 4.50$ if not a bit higher.

At first, I taught it was because one of the managers of Sprott Asset Management, Jean-François Tardif, had announced his retirement for beginning July. Jean-François Tardif was a manager of Sprott hedge fund. Extraordinary hedge fund, but it take at least 100 000$ to invest in it… I just cannot understand how a successful manager can aspire to retirement.

Anyway, it was kind of a short notice for investors and I don’t know if some investors had began to sale their mutual funds they had with Sprott Asset Management because of that leaving. It could be one of the reasons, but it’s not all. I just learn that Sprott Inc. had sold out some Timminco (TIM) stocks. Good start. But Eric Sprott had confirmed, from what I understand, that he still own 12% of Timminco stocks. That enormous!

It’s very sad, but Timminco is no longer in position to rock the TSX. Having a huge number of TIM stocks in the Sprott Canadian Equity Fund that I invest 7 000$ in cannot help the fund to return for a recovery.

Example: during the darkest days of the recession, my Desjardins Fidelity True North Fund fallen to 700$ or even less. Now, the investment is at 1 031.86$. I was able to gain even money from the recovery. I actually make a profit of 31.86$ on Desjardins Fidelity True North. This is just an example I have of an investment of mine where I have regained the money lost. I am expecting the same thing to happen with Sprott Canadian Equity Fund and all of my other mutual funds.

But I am far of the same result with Sprott Canadian Equity Fund. The manager of the fund needs to shake up the overall portfolio. As an investor (small but still an investors), I am expecting a recovery for the Sprott Canadian Equity Fund. And I don’t think Timminco will become what it had once had been, a powerful company of the TSX.

Initially, its 7 033.50$ I had invested in the Sprott Canadian Equity Fund, just before the TSX begin to fall close to the ground lol. Curently (in date of June 2, 2009) the value of the investment is at 4 269$. Not bad, but I had lost 2 764.50$ and no recovery yet.

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