re: what's huntley recommendation?/gsjb Subject re: what's...

re: what's huntley recommendation?/gsjb Subject re: what's huntley recommendation?/gsjb
Posted 10/06/05 17:46 - 8 reads
Posted by Bloodwynch
IP 203.15.xxx.xxx
Post #619497 - in reply to msg. 619483 - splitview

JBM will never trade for same multiples as BHP or RIO. Single commodity, single mine stocks have a risk discount.

True Bloodwynch & I understand your thought of view & agree.

However,

A company like JBM(single commodity, single mine) can trade at a much higher P/E than stock like BHP or RIO because a company like JBM can increase it's production,NPV, turnover & profits(percentage wise) much more easily than a large diversified miner.

Growth factors come into consideration & many miners trade at 30/1 P/E ratio's because of solid,stable future production forecasts.

In Resouces Rio has performed dismally because of their bearish view of the world around them but compare JBM's shareprice to BHP's shareprice movement.

JBM is on top.

Before the "spike" in Nickel prices JBM traded at a P/E of over 12 for many years.

Now it is still under 10.

Prospero will be the next Cosmos Deeps & if run simultaneously with Cosmos(i believe it is possible & likely) then JBM deserves to trade at a higher P/E than both BHP & RIO.

Most miners don't even make money let alone have some in the bank.

JBM does well on all accounts.

$6+ looks like the bottom ATM barring catastrophy.

Cheers.