Just how difficult is it today to find superb precious metals companies selling for peanuts?
Not very.
How would you like to find a company acknowledged as having some of the best management in the business, consistently profitable and operating in an environment perfectly suited for them? With gold up over 50% in two years, what do you think such a company might be selling for, a PE of 20? Or 30? Let me give you some comparisons, Barrick is profitable and selling for a PE of 63, Newmont is profitable and selling for a PE of 45.
How about a PE of 2 and dropping?
Endeavour Mining Capital (EDV-T, $3.60 Canadian EDVMF-OTCBB) was selling for $1.72 a year ago when I first wrote them up. Now they are all the way up to $3.60. If there was an environment designed for their kind of gold/silver merchant banking, it would be exactly what we have had for the last year. Their NAV is somewhere in the $5 range and they are selling at a discount of about 30% to NAV while earning $1.55 a share for last year. They will be coming out with earnings very very soon and they will be barn burning.
And they sell at a PE of two. How much risk do you think there is to this stock at a price of $3.60?
Vanguard Ext Duratio stock quotes
Vanguard Ext Duratio stock charts
Follow this thread
