Share Price I read with great interest today from a couple of contributors who were bantering about the share price differential of AAA compared to EPO.
One should never be looking at the share price in determining the validity of the market in its determination of value. The only figure investors should be concerned about is the Market Capitalization.
Presently AAA has a Market Cap of $164 million compared to EPO's Market Cap of $93 million. (My figures are from Stockhouse) suggesting that AAA has a value of 75% greater than EPO.
This is the interesting in that AAA had a great run last year based on speculation that Indian/Chinese may be looking at a buyout etc. The Market Cap of AAA last summer was in excess of $400 million. Meanwhile EPO languised as we watched the share price diminish from $.60 a share to $.15 a few months back.
Looking forward I am of the belief that EPO will be rewarded with a little of what AAA enjoyed last summer as speculation increases.
I have studied AAA considerably and believe this Company has some outstanding merits. However I will never have ownership in there shares. Why? My reluctance has nothing to do with the Company....I have had the displeasure of losing a considerable amount of money in the past with investments in unstable countries. ( Indonesia and Mongolia comes to mind). I have concern about the lack of infrastructure necessary to develop a mine. I applaud all AAA investors and I hope they become filthy rich with there investment.....however I love the address of Saskatchewan and the HUGE blue sky ahead for EPO.
Good luck and may we all prosper!