I couldn't agree more Elmo. I wrote some friend the following comments, just after the news was out. I don't remember if I posted it here:
The new deal is huge, but it is also with a very long time horizon. What is a yearly $25 million cash flow worth in fifteen years from now ? If you discount the future cash streams with 10%, the sum of the dicounted cash flow is only $ 69 million, not that huge anymore. But what if you discount them with 25%, or 35%, which is the return Sandstorm is making these days. Wouldn't an investment in a more current and safer project at 35% return and re-invest free cash flows again at 35%, not be much more valuable long term ?
One more comment, Retirdcf stated "for those who don't like this move and no longer trust SSL's management, sell the stock and move on". Well I am not going to sell, I still think Sandstorm is long term a very strong buy. I just hope they won't sign any more of this long term, high risk, lousy deals.