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Thursday, January 2, 2014

No gold miner should be 3SD up.


I shake my head:


Why should Rio Alto be 3SD up today, when it was sub-$1.40 just a month ago?

Did someone maybe make a mistake selling this down over the past 4 months?

2 comments:

  1. The morans selling RIO.to in early December clearly did not do the math.

    I think the company deserves a p/e ratio of at least 7-8 as things stand today. An extended oxide mine life and/or an impressive IRR for the sulphide part will justify a higher multiple of course.

    I now see 1.82 on my screen, I remember RIO.to trading above 2 CAD before production even begun. I guess that is what sentiment and gold price can do to your PPS.

    Maybe the company should be a bit more aggressive, print some paper once the PPS has recovered and buy a decent property at cut price?

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  2. Could be a reason:

    http://www.bloomberg.com/news/2014-01-02/itau-hunting-bargains-in-peru-after-world-s-biggest-stock-plunge.html?cmpid=yhoo

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