Eric Sprott Sells Part Of His Stake In Newmarket Gold

Eric Sprott, a notable Canadian investor, has been one of the heavy buyers of precious metals stocks during the ongoing bull market in gold. However, sometimes he stands also on the other end of the market.

Yesterday Newmarket Gold published the info that between July 4 and September 2, 2016 Mr. Sprott sold 3.67 million shares of the company.

After this transaction Eric Sprott owns 26.69 million shares of Newmarket Gold (15.0% of shares outstanding). The graph below shows main shareholders of the company, as of September 6, 2016:

source: Simple Digressions

What does it mean? Well, I had many times noted that it was not a good idea to copy the notable investors. In many cases we do not know what their intentions are. As for Mr. Sprott - despite his long - term view on investing, sometimes he becomes a trader. 

My theory is that he, seeing his stocks appreciating strongly and quickly, sells part of his portfolios to invest in other stocks. Essentially, he is full of investment ideas.

Summing up - although Mr. Sprott had slightly decreased its stake in Newmarket Gold he still owns a large holding in the company. In my opinion, Mr. Sprott plays his own game and this game has nothing to do with the company's fundamentals. These are still excellent.