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Strategies & Market Trends : Natural Resource Stocks -- Ignore unavailable to you. Want to Upgrade?


To: Mac who wrote (5659)12/30/2003 9:41:00 AM
From: Jim Willie CB  Respond to of 108563
 
nice on Endeavor, but pricing PM stocks aint via P/E ratio
it is all about their reserves and resources
if a miner produces heavily, squandering its resources, and makes some profits, its P/E ratio might be low
that could be why its P/E is so low

I prefer to find miners who will show up some nice new deposits, and have no earnings yet at all
or are on the verge of expanding production as the metal price rises above their internal threshhold

NEM is routinely mis-analyzed in this way
imagine they deplete their reserves and resources, earn some good profits, and have nothing for next year

Wall Street has no idea how to put value on the entire PM sector
they will learn over time
it will be fun to watch

/ jim