Sprott Resource Corp. (SCP-T)


Target: C$5.00   Sprott Resource initiates monthly dividend; yields 11.8% Just sold Waseca Energy and has cash to give away.

With its shares trading at a significant discount to book value, SCP has been aggressively buying back its shares under its NCIB ($38 million year to datein 2012); however, it has not had an appreciable impact on the company’s share price

.We believe that the new dividend policy broadens SCP’s appeal to investors, particularly retail investors, given the high demand for yield in the current low interest rate environment. The yeild will probable be flexible due to market movement but still okay.