RE:Please, build me a wet dream.
I will build you a wet dream RJ..... and not just when gold reaches $2000/oz
ts says nmi is worth at least $1.25 and at that price is crazy extremely undervalued...
It is said that the value of anything is what someone is willing to pay for it. Right now, NMI is worth just over C$1.00 but we have a limited number of buyers and a fairly short history of making a half decent profit.
I expect this to change within the next 6 -12 months as analysts come on-board and the profit history of the company lengthens, grows and shows consistency.
What do I expect (wish) to happen. Lets start with earnings, in the last 6 months NMI says they earned 23 -24 cents per share... I will round that out and extrapolate for the full year to 50 cents for 2015. This is the basic premise for the value of NMI.
The historic price to earnings valuation of gold mines is 18 - 32 (my figures) and right now is at a low of 5 -6. Assuming a P/E of 5 - 6, we can say NMI is worth 5 - 6 x $0.5 = $2.50 - $3.00 US..
What is that,,, $3 - 4 Canadian... So you can get in at a 66 - 75% discount... Right now....
To build further on your wet dream RJ... Lets assume gold miners return to historic values.. That gives P/E of 18 -32 x 50 cents = $9 - 16 US/share. Canadian ~ $12 - 20
But for the ultimate wet dream.. When I was searching for P/E of gold miners, I came across a report from Zacks dated July 2015 and recommending 3 miners.. Agnico Eagle Mines, Eldorado Gold Corp. and Royal Gold Inc.
Well Agnico has a recent price of $~24 (US????) and earnings of 6 cents per share in the 2nd quarter. That is a PE of 100!!!!!
Eldorado had a price of $~4 (again US ???) and earnings of 1 cents per share in the 2nd quarter. Again,,, that is a P/E of 100 !!!!!
Royal Gold, I beleive is more of a "streaming" company and thus would have limited upside potential. It had a price of $53.11 (US???) and earnings of 28 cents in the 2nd quarter. Round this out to $1/share earning and a price of $50 per share and you have a P/E of 50
Remember,, these are recommended miners and their P/E is 50 - 100..
Apply that P/E to Newmarket and what do we get.. OHHHH.... 50 - 100 x 50 cents = $25 - $50 US.. Remember to add the 30% for conversion to Canadian $32.5 - $65.00
Sweet Dreams RJ...... LOL