valuation, page-7

I don't hold BMO, just a gold bug analysing gold companies for potential investment. Been in and out of gold stocks since 2002.

I guess my take on BMO is that the financial estimats are very postive, but as always, the market is always right. In practice rarely do you ever find a stock where you seem to be the only one who knows the "true" value of the company. The market is discounting these shares for some reason, once (or if) confidence in management, ounces, extraction costs or whatever it is that the market's concerned about is confirmed, the share price will reflect the the financials. And of course there will be those that spout that they always knew it. Or it could fall victim to whatever the market is worried about.

I personally think the market is concerned that the ounces contained and proposed production are not solid, and that management have not been completely A-grade to back up confidence in the ounces / production levels. Probably news of ontarget production (if it happens) will cause a large re-rating as it shores confidence in management. However, I think the situation of not producing at stated levels will be met with limited downside as I believe this is already dicounted in the share price.

A lot of waffle, but you must always, always ask yourself why a share price isn't where you think it should be, and not simply succumb to the illusion that you somehow are the only one who sees the value of the company and that everyone else must have just overlooked it.