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Yamana Gold Inc. AUY


Primary Symbol: T.YRI

Yamana Gold Inc is a Canadian-based precious metals producer with gold and silver production, development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile, and Argentina. The company's segment includes Canadian Malartic; Jacobina; Cerro Moro; El Penon; Minera Florida and Corporate and other. It generates maximum revenue from the Canadian Malartic segment.


TSX:YRI - Post by User

Bullboard Posts
Comment by mas75on Mar 03, 2010 9:36am
496 Views
Post# 16837221

RE: undervalued

RE: undervaluedFinboy:

I can see your frustration clearly and I understand exactly. However, I am not (or at least try not to be) a trader. I have held this one for a number of years (since the Northern Orion days), and have seen it greatly overvalued and undervalued. Sorry, I know you hate the terms, but there is no other way to describe it.
 
In my opinion, when the gold market is "bubbly" and stocks are being bidded up excessively, a stock like YRI is lifted more than most. Once again, in my opinion, this occurs because when a majority of investors have reason to believe that the conditions for gold are very positive. I don't think that this has occurred: There is a minority of us who believe that gold is a good insurance policy against the imbalances facing the world's major players (USA, Europe, even China if the others fall). YRI has profitable mines, an ambitious expansion plan, and strong cash flow. I agree with you that profitability is pretty pathetic. However, I continue to hold because I believe that when management is done building and expanding mines (and spending large sums of money to do so), resulting profitability will be ridiculous.

Don't take this the wrong way, but I get the impression that you might be happier holding a Newmont, Barrick, or even Goldcorp, as these guys have much more stable operations. Personally, I like Goldcorp (I have held it in the past, too), as they have some good growth thrown in to their established operations. As well, I have great respect for the CEO (Ian Telfer). He has a history of hitting his targets with aggressive action. Some days, I wish that I still held it.

I hope that this clarifies my "fundamentally undervalued" comment.
Good luck in your holdings (YRI and elsewhere),
mas75
Bullboard Posts