turmoil and lackluster mining sharesThe recent pop in gold helped the mining shares a little but the mining stocks still get all the downside and little of the upside. SMF is a good example. This is a PROFITABLE company selling stock at 5 X forward eps. Incredibly cheap, with production upside coming. They are producing a product that is increasing in price and has good potential to really increase if all these new dollars created out of thin air ever come home to roost.
We should be at C$2 minimum and C$4 if you apply the normal 20X eps of a mid sized producer. Good reserves with excellent exploration upside.
But the turmoil has caused concern and caution among investors. There aren't many places to hide and the governments can mess with Gold because it's a relatively small market and they have tonnes of gold in their vaults and can spook the markets just by threatening to sell. They will do what they can to discredit gold.
Still I feel good about Semafo. They have good mgmt, good profits, excellent upside. Good long term hold in a turbulent market. Bobwins