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Andrew Kaip of BMO's poor analysis of Sandstorm Gold is BMO

In the post "When sellside brokerage anal ysts get it totally wrong, BMO and Sandstorm (SAND) ( edition", we noted how Andrew Kaip of BMO vastly underestimated the upside potential of SAND by sticking a 12 month U$4.50 target price on the stock, a price that was taken out the very next day. We summed up by saying:

1) Kaip won't get into trouble for this because he basically called the stock higher and it went higher. Anal ysts face flak on those rare occasions they're daft/brave enough to call sell on a stock, not buy (or that ultimate get-out phrase, "market perform" linked to a tepid upside percentage call).

2) But it's not a "market perform" at all, it's obviously a "market outperform". He's done his readers a disservice by not getting them into a stock that moved 13.9% in the space of one day.

3) This can only mean that Kaip hasn't read SAND correctly. There's something very wrong with his basic assumptions and, as a public service, IKN invites said anal yst to consider just why he's got the call on this stock so obviously wrong. He may become better at his job from such a period of necessary introspection.

Therefore, the thronging masses here at IKN Nerve Centre had a good old guffaw and chuckle when reading the NR out of SAND yesterday announcing its U$50m bot deal, which starts like this (IKN highlights and bold-types for fun):
Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (NYSE MKT:SAND)(TSX:SSL) has entered into an agreement with a syndicate of underwriters co-led by National Bank Financial Inc. and BMO Capital Markets (the "Underwriters") pursuant to which they have agreed to purchase, on a bought deal basis, 11,236,000 common shares of Sandstorm (the "Common Shares") at a price of US$4.45 per Common Share, for aggregate continues here.

And no warrants on that. In other words, BMO is happy to buy SAND shares at U$4.45 when its house target is U$4.50, which can only mean one of two things:

1) It as a brokerage is happy about offering its clients a 5c mark-up on a U$4.45 stock (or 1.1% once the holding period is done).
2) The people higher up at BMO don't agree with their own anal yst.

Guess which one is more likely?