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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (63890)	5/1/2020 12:37:34 AM
From: Paul Senior	Respond to of 78753

Gold was in a past life for me, EKS, and I don't follow or have any interest in gold miners now. Congrats to you if you've been in and following the gold stocks' rise. Maybe there is more to come. I've no clue.

To: E_K_S who wrote (63890)	5/1/2020 2:38:09 AM
From: FIFO_kid2	2 Recommendations Recommended By DinoNavarre E_K_S Respond to of 78753

RE: AUY Just be aware you can easily manipulate financial numbers when you report on GEO fixed ratios when in actuality they are constantly moving and AUY has always had problems. BTG is a really well run company without any negative surprises but it is pretty close priced to perfection. I also think GOLD is a great company and the preferred stock to hold if you pick one name. As for political risk I think the Frasier index is very biased. Buy the company based upon its cumulative asset quality and relative value. Personally, I am long HUM.L and CMCL but they are only one mine companies. CMCL pays a 2.5% dividend (It used to be 10% in 2016) and is expected to grow production by approximately 50% starting in 2021. The expansion was all internally funded with cash flow so there is negligible long term debt and the float is around 13 million shares so there is plenty of production leverage. The draw to HUM.L is it now trades around a 60-65% free cash flow yield and the balance sheet is finally repaired but the market continues to punish the stock for its past multiple pit collapse blunders when they were mining softer ore at the beginning of its mine life and so far the firm has also been very ineffective in monetizing their larger lower grade project.

To: E_K_S who wrote (63890)	5/1/2020 5:12:40 PM
From: bruwin	1 Recommendation Recommended By E_K_S Respond to of 78753

AUY. I would say that your buy into AUY is a good one based on the company's financial performance over the last 9 to 12 months. It's all very well for some to make forecasts based on Cash Flows, etc, but how sure can one be about "future predictions" ? At the current time AUY's Total Shareholder's Equity (Total Assets - Total Liabilities) appears on its Balance Sheet at about $4217 Million. It's current Net Cash sits at about $323 Million, which is about 7.6% of the former. Is anything to do with AUY's Cash going to pose a serious risk to AUY's future performance ? Personally, I wouldn't have thought so. IMO, looking at several Financial "Markers" on the company's Income Statement and Balance Sheet usually gives on a good idea as to how a company is, and has recently been, doing as a business. And isn't that what is important .... how much of its Total Revenue ends up as Net Income from which a distribution can be made to Shareholders ? At least those are Current Facts. And then looking at the price chart gives one an idea if the recent business performance is reflected in the chart which, in turn, is how the "Market" views the company. Needless to say, if AUY's business performance should change to the negative, as reflected in future financial statements, then one takes appropriate action .... Never Being "Married" To One's Stocks ... I used the TTM numbers for AUY's most recent 4th Quarter as I'm assuming they are Audited :- So, AUY's Gross and EBITDA Margins look good. Debt Expense is currently under control, although Long Term debt could be lower, but it's not a "train smash". Company pays its Taxes. 14% Net profit is OK, Based on the "Equity Bond" approach AUY may be under priced. If one looks at Net Income performance over the 9 months one sees a very large improvement of about 212% from 2Q2019 to 3Q2019. And since then there's been a steady Quarterly increase resulting in a total increase of about 84% in the following 6 month period ..... Seems to me that's reflected in the "Market's" reaction to AUY's stock over the relevant period ..... Once the Virus Crisis began every share took a plunge, and AUY was no exception. However, it has already overcome that fall in its price and it's back to where it was when the Virus hit, which seems to me to be a good sign ......