I just took a position in Jaguar Mining (JAG) and I will hold this one as I consider it a value play. At under $8/share, JAG is selling at the same price as 13 months ago when gold first reached $1,000.
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In the past 13 months JAG has run from $8 up to $12, $8 to $13, $11 to $14 and $9 to 12.
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The 84M share float is indeed short sold 9.2%. Nothing like buying a miner with a little kindling wood for good measure, ya think?
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Kitco's Matlack projects 2010E earnings at .34/share PE 23. And projects 2011E at .85/share PE 9.5.
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Reuters Research has 2010E earnings at .43/share PE 17 and 2011E at $1.01 PE 7.4
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Probably the shorts know something I do not. But when the gold market heats up, and it will, this stock, bought at this price, should do just fine.
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John, am wondering if Yamana Gold (AUY) would fit in the same category as a cheap gold stock? When gold first reached $1000 AUY was $19.50. Now it's $9.50 with gold at $1188. Another buy candidate?
ReplyDeleteSimonsays - nice catch. Yamaha Gold (AUY) appears to me to be underpriced. It is a solidly profitable company selling at a 2010E PE of just 15, yet its peers in the in the Large Cap category sell at an average 2010E PE of 25. Save for ABX and BVN, it is the lowest price in its group. Any price under $10, as with Jaguar and its $8 level, looks like a fire sale price to me. I'll add that to my list of gold miners that I watch daily. Thanks.
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