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First Asset Morningstar Emerging Markets Composite T.EXM.A



TSX:EXM.A - Post by User

Comment by mrmrreon Feb 26, 2007 7:52am
304 Views
Post# 12309704

RE: Contest

RE: ContestI agree with Happy. Price predictions are of no use to me. Post questions/answers, further due diligence, possible rumors of new coverage or updates from the Company. Another thing that can be valuable is comparing market value to other similar companies. It is market value, not price that is important. Here is an example of what I mean. Kimber (KBX) has done a significant amount of drilling and has a "measured and indicated" resource at Monterde that is approaching 2MM gold ounce equivilant. When I say significant, they have drilled about 400 holes, in about 5 years, and spent over $20MM. This is with no deep drilling. KBX is currently valued at about $92MM. ($1.82 X 51MM (fully diluted) shares. They have about $10MM cash, so enterprise value is $82MM. EXM has about 90MM fully diluted shares. So if the market were to value excellent results at Reyna de Oro, based on KBX it might be worth about $.91 per EXM share. But that is after years of drilling. On the other hand, PJO is extremely overvalued in the market with a $900MM market cap and about 4MM GOE. Dont get me wrong, I am long EXM and hope it gets overvalued like PJO on drilling results. But, I think this kind of valuation analysis is much more valuable on the board. It also will not confuse newbies.
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