Quote:
Originally Posted by Trochu
Well, potential upside. Seems they aren't a huge company, with inflation, price oil, etc., their construction costs were approx. $300M more than anticipated, took all their free cash, revenue plummeted. The theory bow being that the mine is done, gold price going up, and another mine online, revenue will be higher than before, and stock prices will go up significantly.
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JMO but I always buy companies with a positive cash flow. Argonaut is losing money hand over fist and I wouldn’t be surprised if it went under. Literally every metric I would use to value a company is negative.
For me I try to value companies mainly based on their future earnings. It’s very difficult to value a commodity company because of the earnings fluctuating.
That said i may be wrong and it may become a great investment. If I’m betting though, I would say it goes down.
How quick do you want to make money? I recently recommended Coke(KO) as a buy at $60. I believe it will be worth double that adjusted for inflation in 10 years, and it will still be a strong business you could hand down to your kids. If you’re willing to wait I think you’ll do well.