The apparent values in this stock are hard to believe:
Stock price: $4 7/8
Revenues per share: $31.18
Book value per share: $58.37
No debt, 7% ROE, 13% net margins, above average dividends (for now)
From what I read, FSCNY is a relatively high cost producer and is closing a number of mines as a result of the poor market conditions for gold. Revenues and earnings will likely show poor comparisons until the market improves. But with the intrinsic value of these shares, it's hard to pass up. As long as they don't sell the mines, it becomes a waiting game.
I'm considering taking a stake here, with the believe that some day gold will recover, and with it, the price of these shares. |
