This is a period where stock valuations are wild, inconsistent and extremely speculative. In time, sound fundamantals and proven earnings will drive valuations.
That's why for instance IOH - which I own (with little more than drilling data and the speculation RIO will snap it up) has SP up in the stratosphere without not even a grain of ore trucked beyond it's gate.
AGO SP will take off leaving the early risers behind when synchronized global recovery kicks in high gear and the demand for steel sky rockets (with future forecasts projections of demand exceeding supply). BTW, China's and India's commodity consumption growth is still in the early days, future demand on the upside in the long term can be incomprehensible at this time.
Think about it. The bulk of China's population are still peasants and yet China this year overtook the US as the biggest car market by volume.
Long before that happens, the market (and funds) will appreciate a company with a potentially 26MTA (real mid-tier) operation that AGO now targets for 2014.
For this reason, I am even more optimistic about FMG.
There is nothing unrealistic in time to see FMG & AGO SP to be $20 and $10 respectively.
Even those poor buggers who bought AGO at the last peak will be in the black before too long.
AGO Price at posting:
$1.87 Sentiment: Buy Disclosure: Held
