RE:HH - THOUGHT-PROVOKING ARTICLEmrbubba wrote: HH's post today re risk versus uncertainty is brilliant, timely, and thought-provoking, unlike some others who are obviously here to maxturbate their ego (and who are therefore on IGNORE).
With all due respect to HH, I do have one question: How can we be certain that ONLY Beaton's Creek and ITS potential is factored into the current share price?
I'm one to believe that investors for the most part invest based on all information that is currently available. What we KNOW about Novo is that it is on the doorstep to production, its investments are worth approx. $80 Million, other very reputable investors (e.g. Sprott, Sumitomo, Creasy) believe in the story in a BIG way and have put their name/money on the line, and Novo has a VERY healthy cash position. To all that add the exploration potential once the wheels of production start turning.
I also know that McEwen Mining, which already has RESERVES on its balance sheet (read no uncertainty as to what they can produce), has a market cap of only about $402 Million. One can argue that MUX is materially undervalued (things in South America are a little "slower" too, especially these days).
Juxtapose Novo's market cap, which is at about $565 Million. I can argue that yes Beaton's Creek is of course priced into our share price, but it's not really priced in at 2.50, and more likely priced in at something LESS THAN 1.00 (which is what MUX is trading at currently). The consequence is that yes in fact Novo's OTHER asssets (cash, exploration potential, reputable investors, and cash position) are indeed priced into Novo's current price.
Just thinking out loud here, so be easy on me. I'm a BIG believer in Novo - in fact, I believe that the question is not IF Novo will be a minig major, but WHEN.
The only thought HH provokes from me is -boy I am not going to read that.
DBR