Precious and Base Metal Investing Message Board

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Gold/Mining/Energy : Precious and Base Metal Investing

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To: Claude Cormier who wrote (15274)	8/1/2003 12:50:21 AM
From: russet	Read Replies (1) of 39344

I can't resist (ggggggg) I'm interested to know what junior resource companies you might know that have been bought out by another at net asset value and still live to tell the tale. Don't they need to be producing and increasing reserves every year to get valued near this magical number,...and of course the magical NAV number differs depending on which bean counter is calculating it,...and what discount rate they chose to use. I like your beans,...but wonder what NAV has to do with valuation of juniors? To me, the most important thing in valuation of juniors is how many analysts, brokers, newsletter writers, and fund managers are pounding the table to buy,...and perhaps this is where the magical NAV comes in as the higher these folks magic ball says it is, the higher the sheep will bid up the stock. So I submit that a 30% discount to your calculated NAV is not enough to warrant a buy,...it is like a sell signal. You must have at least an indicated triple to pound the table,...you must go back and sharpen your pencil (gggggggggggggg)

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