RE: K OnThe Prowl w/Healthy ArsenalSo how much do you think the shares are really worth?
Right now, K is trading at Can $ 21.54, which represents a P/E of 35. It pays a dividend of 0.5%.
In comparison, ABX trades at $ 45.12, has a P/E of 20, and pays a dividend of 1.1%.
The substantial dilution will, of course, raise the P/E of Kinross. To bring K down to a P/E of 20, the share price would have to drop to Can. $ 12 (before dilution).
Any idea of what the current fair market value of K might be? (The "trust me" comment does not instill a lot of confidence considering today's economy, unless you have infinite trust in Kinross' management.)
I like the company but hate paying too much.