RE: From the Sandstorm Gold board to here >>>So does anyone else think that this one is a potential 10 bagger?? (1000% gainer) Based on incresed production and potential cash flow from price increases in gold in the next 5-10 years??<<<<
.
ah, er.....at the risk of getting bashed by the permabulls here... NO! {doesn't anybody think here?}
.
Wouldn't a ten times current share price suggest a market cap of ten times the present market cap? [maybe even MORE when we get the dilution of the CGA shares?] If the current market cap is 1.4 Billion wouldn't that suggest a projected market cap of $15 Billion? Is BTO looking to increase production by ten times in that time frame?
.
Let's see Kinross Gold has a market cap of roughly $11 billion - but it has annual production of 2.6 Million ounces per year. Yamana has a market cap of 13 billion and annual production over 1.1 Million ounces. What is BTO's projected growth? Why would the market value BTO higher than other companies?
.
So if you want 10-bagger returns is it better to look for companies with a market cap in the Billions or companies with market caps in the $50 to $100 million, and, ones with good growth potential and good management? This one has good potential as a multibagger, just not a ten fold increase.
.
Would love to hear why you think this has 10-bagger potential. Or is this just your technique to let others do your DD for you or just wishful thinking (hope)?