tyke - This reminds me of the discussion between Don Coxe and Sue Herrera the last time he was on CNBC. She kept trying to make the point that these stocks (mining stocks) had already gone up a lot, so they must be expensive by "traditional measures". Coxe responded that their earnings have been increasing at a rate that exceeded their share price appreciation and that, in fact, most of them are still trading with single-digit P/E multiples, far below the market average. There is no premium, there is still a discount.
Some people told me that First Quantum (for example) was "too expensive" at $7, at $10, at $15, at $22 and at $25. When you examine their probable earnings trajectory over the next few years, the stock still looks cheap to me.
Personally, I have room in the PF for both types of issues, Steady Eddie's and potential rocket rides. I wouldn't want to go 100% into either category. |
