GREY:MLKKF - Post by User
Post by
24~Karaton Jun 23, 2008 10:06am
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Post# 15216236
Relative Value
Relative ValueBoomboom2,
I shouldn’t think that your concern, that “The problem is the overall markets look a little shaky at the moment” isn’t anything that should necessarily disqualify ML from your consideration.
First and foremost, ML is a standout in the market, and that should only continue. Here is a one-year comparison of ML’s performance vs. that of its peer group.
Furthermore, just what market is it that is looking a little shaky? If you say the Banking and Financial sectors, I might be inclined to agree with you. Actually, however, Mercator Minerals has shown an uncanny correlation in its price performance to that of the major gold mining indexes, as shown below. And again, I don’t think that any cause for concern.
In my opinion, the only reason that ML is trading as low as it is right now is that the market doesn’t yet appreciate the monster cash flow that it will soon enjoy. But as production successfully ramps up in the months ahead, that will soon become a distant memory!
