Wayne: Share Price vs. NPV, & Todays Financial Posts "Hot Stock "
I raised a question about share price and NPV (net present value), and how they relate to one another. I received no answer, so I thought I would take one last try:
Message 7805321
Given that WSP is in the exploration stage, should it trade at a premium to NPV or a discount? Has anyone got some history on how other resource stocks trade in relation to their NPV? It seems many people are saying the DB has a target of 17$, when in fact its a NPV, and a target price should be some multiple of it - higher or lower I don't know. Looking forward to your comments.
The following article in todays Financial Post mentions WSP and George Albino. Some may find this of interest.
nationalpost.com
Thursday, February 18, 1999
Nuinsco investors gamble on motherlode
[Edited from main text]
The Nuinsco buzz, along with Argentina Gold Corp.'s South
American gold find and strong sample results from diamond play
Winspear Resources Ltd., have helped create some much-needed
excitement in the moribund exploration sector in recent weeks.
Nevertheless, industry watchers are hesitant to label Nuinsco
another Diamond Fields until further data is available.
"We've got grade but we need tonnage," said Glenn Brown, analyst
at Toronto's Canaccord Capital Corp. "I always recommend
caution and we've practised that as a firm on these drill hole trading
plays."
"It is a real speculative play," agrees George Albino, of Deutsche
Bank Securities Ltd. of Toronto. "You can't judge it. You can only
play momentum and hope." |
