"all things being equal ? there tends to be an over-valuation of the stock prior to production"
Exactly. But I think there is a simple reason why this happens. In the spec phase, all kinds of numbers are bandied about, possible scenarios, etc. And so the share price in all the euphoria is 'PE'd on these wild possible numbers. Noting wrong with that, none of us can predict commodity prices.
But once production actually starts, the real numbers are there for all to see, and the share price then PEs' on the actual production figures, - which are invariably lower than the highest spec figures.
We can take advantage of all that if we do some homework.
CCU Price at posting:
$1.02 Sentiment: Hold Disclosure: Held
