"Agnico Eagle is selling at 91 X forward earnings.... insanity"
The whole market is insane. You say it's all about making money. For me its partly about making money but also about self preservation, ie retaining wealth.
If you don't analyse you are simply riding momentum/trends and end up owning the bubble, even if it that bubble has spilled up and over into the gold sector. It's worse for the people buying the bubble, not so bad for the people who have ridden it up because when it bursts it's paper profits they will lose. I'd say if you were clever enough to ride NST up for a +Disallowed you will also be clever enough to say when enough is enough. Happy days for the few who can truely say they have done this with real money on the line. In my opinion NST is well past being sensibly valued. In any case you never win arguing with the bulls who are happy and don't care if things just don't make sense anymore, pretty much the whole yank market for the last 11 years IMO. Print, print, print. That's how it has worked and that's why we are here today with companies trading on 91x earning or even much much worse than that. Very few seem to worry anymore.
Forward earnings of 91x or much worse just don't make any sense. What is happening with that is like what is happening with the majority of the equity markets now, "other people's money" is being sent over the top to run forward on the command of the generals who are sitting back safely away from the sound of the machine gun fire which will eventually start ripping through the flesh and bones of the powerless. When the dawn breaks over the carnage the man on the street will be wondering what happened to their savings invested with the "professionals". The answer will be short and sweet. Sorry it is all gone and there is nothing we can do about it because markets need to make sense, all business need to make sense. All businesses need to be commercial. You can't manufacture returns to shareholders via overvaluations of share prices forever.Esh
NST Price at posting:
$11.63 Sentiment: None Disclosure: Not Held
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