Starcore International Mines Ltd T.SAM

Q3 production results: I estimate earnings $1.6M, EPS $.030

[AlfTanner]

3,063 gold equivalent ounces in Q3 (Nov-Jan), an increase of 7% from 2,867 ounces in Q2.  

In Q3, the price of gold averaged around $1865.  

I estimate Q3 earnings will be $1.6M or $.030 per share.

Profit of $1.6M annualized is $6.4M.  With the market cap at $13M, that puts the P/E at 2.0.
 

[disosa]

is crazy low P/E. i buy more today...why is nobody interested in this stock? maybe is the small project that is holding back new investors...i don't get it..

[AlfTanner]

I have seen it before.  Stocks like this can languish for a long time until all of the sudden they are "discovered".  Investors often get frustrated and sell out before the big rally starts.  Maybe this will never be discovered, but patience is usually rewarded with this kind of stock ... eventually.

[jawadshuaib]

Appreciate the input. I have a question: How can we ever realize gains on this company if we are never paid a dividend or buyback? This is the sort of company I would like to hold forever, not buy and sell considering its low volume. But doesn't it make sense to pay dividends?

[AlfTanner]

I agree that stock buybacks or dividends are in order.  I know the company wants to use some of the cash from the San Martin to pay for exploration at El Creston, but there should be plenty of extra cash available.  With the extreme low valuation, I would prefer stock buybacks at this point.  I think buybacks would give investors the greatest return.   I also agree that

[jawadshuaib]

>> It is like you really own part of a small gold mine. 100% true. Except, I feel without a buyback/dividend, I am forced to be speculator. What good is it to own a company that won't reward the shareholders. If price appreciation is the only way to get rich, then this is not the stock to own as it trades so thinly. Any thoughts?

[Klaus3001]

The paid dividend in the past. Maybe you mist it. I expect them to do it again,but first needs to be put money in the ground.