In This Episode
In a week where Pinterest’s IPO is gathering steam and preparing to dump 75 million shares on investors, Lyft is threatening to sue Morgan Stanley, and Bank of America is getting out in front of the “Fight for 15ers” by hiking its minimum wage to $20/hour, Dan Ferris parses the news to tell listeners what they can really expect from it all.
And as gold prices continue their stealth bull run – closing up another $4 an oz last Monday to hit $1,3000 as Dan records this – Dan reveals his all-time favorite way to play precious metals – a business structure that puts YOU first in line for profits.
He then introduces this week’s guest, Brian Dalton. Brian co-founded the only mining company Dan has ever recommended without a trailing stop – he’s that confident in its position.
“If you have one penny in mining stocks,” Dan says, “you need to know what this guy has to say.”
NOTES & LINKS
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01:30: Dan explains the best ways to take advantage of gold and other metals as investments - as well as the one gold-related business you DON'T want to be involved in.
05:45: How can you slash risk from an investment in precious metals? Turns out, there's one play on precious metals that puts you front in line for profits. "No matter what happens to the mine's owner, no matter how the ownership is transferred, if there's a bankruptcy or whatever, your interest remains intact."
11:25: Dan reveals one major red flag in the sector. "When a company calls themselves a prospect generator, and then talks about this big flagship prospect, that's their biggest thing... you need to take a pause there."
13:23: Dan gets into Pinterest's looming IPO. 250 million people use the product monthly, and spill out their passions and interests for the world to see there - so why is it worth so much less than Facebook?
20:08: As Bank of America raises its minimum wage to $20, Dan explains why increased wages are really just wage inflation - and when inflation finally hits wages, you know it's real.
22:38: Dan introduces this week's podcast guest, Brian Dalton. Brian co-founded Altius in 1997 while studying geology at Memorial University of Newfoundland. He has been the President and CEO of Altius from its inception, over which time the company has grown from a market capitalization of less than $1 million to approximately $550 million today, with projected high-margin royalty revenue this year of around $70 million coming in from 15 mines. A long-term contrarian investor by nature, he relishes the wild cyclical valuation swings that characterize the mineral exploration and mining industries.
26:20: Dan asks Brian about the unique positioning of his company before its big discovery - in the middle of a 17-18 year bear market that made minerals as hated as they'd ever been. "We walked into an IPO in the darkest days of the mining industry... maybe in decades."
30:28: Dan asks Brian to sum up the basic history and prospects of Altius for his listeners, and Brian explains how he turned his company from the brink of bankruptcy.
35:00: Brian explains how a great buying opportunity supercharged his company's royalties - "we bought and bought and then we bought some more, and here we are today." Now, the royalties have grown from $3-5 million to $70 million since Dan's been following them.
44:50: What could change in Brian's business model? Anything's possible - but as he says, "I'm just gonna run with the guess that making gobs of money and having it compound at crazy rates for a long time will ultimately pay off."
58:44: Dan takes a question in the mailbag from Carl T., who attempts to call him out for his claim that the U.S. Dollar has lost 95% of its value over the last 100 years. "That doesn't make sense!"