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Gold/Mining/Energy : PHILEX GOLD INC (PGI) - TSE.... Trading at under 30% book -- Ignore unavailable to you. Want to Upgrade?

To: Pierre J. LeBel who wrote (1)	2/12/1998 8:14:00 PM
From: Michael M. Cubrilo	Respond to of 86

Pierre, thanks for the reply. My information comes from the most recent Investors Digest review of Key Ratios for 1000 Canadian Companies. The PGI data is from the Precious Metal Mines section. The reported earnings are EBIT (Earnings Before Interest and Taxes) per share. The P/E of >7 is the most recent closing price divided by the fully diluted earnings per share for the most recent FOUR quarters. The CF/Debt is the ratio of cash flow to debt, which measures ability to repay debt. The higher the number, the better. PGI's number of ~2 is one of the highest in the group. It would appear that compared to the other 80 or so companies listed, PGI had some of the strongest numbers in its peer group. Other companies, like Eldorado, have much worse numbers and yet ELD's share price has almost doubled recently. I made money on ELD, and am now out and it seems that PGI should be trading much higher. PGI has not moved up... yet almost every other stock has rebounded and there are some with terrible financial numbers. The P/B value of ~0.3 is the ratio between the companys' most recent closing share price divided by its most recent book value. The lowest number is the best ratio. The book value is defined as its net worth per share and considered a more conservative and stable figure than its net asset value per share. These are published numbers... so, if you have another source of information, it would be great to share the info. No promotion on my part, just unveiling what I think is an undervalued stock whose chart looks great. If one is supposed to 'buy low' and 'sell higher', than now is certainly the time to be buying PGI. I am long and hold shares. mc

To: Pierre J. LeBel who wrote (1)	2/16/1998 3:18:00 PM
From: Michael M. Cubrilo	Read Replies (1) \| Respond to of 86

Pierre, on the stockwatch forum I obtained a copy of the most recent news release from Philex, which indicated that the anticipated 1998 gold production is expected at 132,000 oz at an average cash cost of $170/oz. I believe about 40% of this production has been sold forward at $345/oz The P/E ratio for February 14 was listed as 5, which is very cheap. Still looks like a secure investment, and Philex is the largest gold mining company in the Phillipines. mc