RE:ARC'S VALUE IS NOT REALIZED Just one point ..the industry average price to earnings for NA Resources company's is 13. TOU is currently at 9 and ARC is at 24. How is TOU fairly priced?
As well TOU is at lower P/B than the industry average and ARC. How is TOU fairly priced?
ARC has a -9.5% negative net earnings and TOU a positive net earnings of +45%. Therefore how is TOU fairly priced?
TOU was way over sold and it hasn't reached the fair value metrics the industry has set. Simple because TOU has ran up 160% doesn't mean that this significant run is done as it was over sold in the opposite direction when resources companies were out of favour TOU retraced better than any other resource company but still remains under valued when compared to its peers and ARC. TOU is still better value than ARC simply according to the numbers.
ARC's revenue to debt ratio is 1:3. TOU's is 1.3:1. So how is TOU fairly valued? If it is that means ARC is way over valued. As well the technicals state that TOU has less resistance from both stocks current chart going forward. ARC close right on what will either be support or resistance where TOU hammered through huge resistance 3 times and has confirmed them all as support in the last 6 weeks a feat ARC has not accomplished and ARC faces massive resistance in the $13's
Although price targets are just that, targets, the latest price target for TOU is $70. That is a 56% increase from the current share price.
I hope ARC does well. But if TOU is "fairly valued" than one must conclude that ARC is way over valued. These are just the facts. Just the numbers.