Exeter Resource Corp. is an AMEX listed security that has been trading in a range between $1.47 and $4.21 over the past year. With 38,081,010 shares outstanding, a recent price of $3.67 gives a total market capitalization of $138,995,690. While there are certainly larger companies, Exeter Resource Corp. has definitely earned its place in the pack. Last year, Exeter Resource Corp. created $-0.14 in earnings for every share outstanding.
Exeter Resource Corp. is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.
With a share price under $50 a share and earnings per share below $1 a share, Exeter Resource Corp. is unlikely to be an interesting value proposition.
Showing posts with label Silver. Show all posts
Showing posts with label Silver. Show all posts
Thursday, July 19, 2007
Monday, July 16, 2007
Endeavour Silver Corp.
Endeavour Silver Corp. is an AMEX listed security that has been trading in a range between $3.19 and $5.48 over the past year. With 44,839,150 shares outstanding, a recent price of $5.21 gives a total market capitalization of $226,886,096. While there are certainly larger companies, Endeavour Silver Corp. has definitely earned its place in the pack. Last year, Endeavour Silver Corp. created $-0.12 in earnings for every share outstanding.
Endeavour Silver Corp. is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.
With a share price under $50 a share and earnings per share below $1 a share, Endeavour Silver Corp. is unlikely to be an interesting value proposition.
Endeavour Silver Corp. is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.
With a share price under $50 a share and earnings per share below $1 a share, Endeavour Silver Corp. is unlikely to be an interesting value proposition.
Tuesday, June 19, 2007
Silver
The price of silver has risen along with the rest of the major precious metals to great heights in recent months. Because it is often lumped together with gold and platinum, silver is often purchased by investors interested in long-term wealth protection. Yet silver has a number of unique characteristics that significantly differentiate it from these metals.
While gold and platinum are extremely useful in electronics and industrial processes, their comparatively high price ensures that their use in anything far removed from jewelry will be quite limited. Silver, on the other hand, is a working man's precious metal. Because silver is used industrially and consumed on a massive scale, silver's price is somewhat insulated from speculative nose-dives.
Many of the same companies that mine gold and other sundry minerals are the world's primary producers of silver. While these companies provide an opportunity to make money on a continuing silver rush, buying the commodity directly represents a better opportunity to make a so-called "pure play".
One potential benefit of purchasing silver directly is that once an investor has the silver in his or her hands, the government effectively loses track of the metal. Unscrupulous investors can then directly sell their silver at any time without paying taxes. If undertaken on too large a scale, this scheme is sure to be revealed. But juicing returns by a minimum of 15% may be worth the risk to some. Of course, the eventual costs of dealing with the IRS will eventually outweigh the benefits in most circumstances.
While gold and platinum are extremely useful in electronics and industrial processes, their comparatively high price ensures that their use in anything far removed from jewelry will be quite limited. Silver, on the other hand, is a working man's precious metal. Because silver is used industrially and consumed on a massive scale, silver's price is somewhat insulated from speculative nose-dives.
Many of the same companies that mine gold and other sundry minerals are the world's primary producers of silver. While these companies provide an opportunity to make money on a continuing silver rush, buying the commodity directly represents a better opportunity to make a so-called "pure play".
One potential benefit of purchasing silver directly is that once an investor has the silver in his or her hands, the government effectively loses track of the metal. Unscrupulous investors can then directly sell their silver at any time without paying taxes. If undertaken on too large a scale, this scheme is sure to be revealed. But juicing returns by a minimum of 15% may be worth the risk to some. Of course, the eventual costs of dealing with the IRS will eventually outweigh the benefits in most circumstances.
Investment Opportunities in Precious Metals
The prices of gold, silver, platinum, and palladium have been on a tear for the past few years. The big profits for "gold bugs" have easily out-paced the rest of the market. How do you get in on the excitement without losing your shirt? Consider investing in a precious metals mutual fund or an ETF. While the usual warnings about avoiding hefty expense ratios still apply, the big risk with investing in gold and silver is insufficient diversification.
It makes plenty of sense to diversify your investment exposure across a wide array of positions. You need to understand that gold and other precious metals are almost completely unlikely to beat the broader market over any long period. This is because the long-term price potential that these commodities can rise to are strictly limited.
Gold and silver are famous for their use in ancient coins, but these days most gold and silver goes for industrial purposes. Precious metals are important components in computers and other electronics. These industries are enormously price sensitive. If the price of gold somehow rose to $1800 an ounce, manufacturers would use other materials. This would drive the demand for gold through the floor, making investors who foolishly bought at the peak big losers.
Commodities in general have been hot for several years now, but the long-term trend is actually downward. Improving technologies and increased competition have made it easier to extract more gold more quickly.
The reason gold is so expensive is its tremendous scarcity. All of the gold ever refined anywhere on Earth would form a giant cube just 66 feet on a side. That may seem like a lot, but compare that with millions of tons of other industrial metals like iron that are refined every year.
Production of precious metals and gold in particular is highly localized. Nearly 80% of the world's gold production since 1900 has come from South Africa. Even within a large, diverse country like the United States, almost all production has come from just 3 states.
Mutual funds and ETFs are clearly the way to go if the commodities boom continues to take precious metals higher. Just don't make the mistake of investing too much in gold or silver. These lustrous metals look shiny, but in twenty years their cumulative returns will be anything but stellar.
It makes plenty of sense to diversify your investment exposure across a wide array of positions. You need to understand that gold and other precious metals are almost completely unlikely to beat the broader market over any long period. This is because the long-term price potential that these commodities can rise to are strictly limited.
Gold and silver are famous for their use in ancient coins, but these days most gold and silver goes for industrial purposes. Precious metals are important components in computers and other electronics. These industries are enormously price sensitive. If the price of gold somehow rose to $1800 an ounce, manufacturers would use other materials. This would drive the demand for gold through the floor, making investors who foolishly bought at the peak big losers.
Commodities in general have been hot for several years now, but the long-term trend is actually downward. Improving technologies and increased competition have made it easier to extract more gold more quickly.
The reason gold is so expensive is its tremendous scarcity. All of the gold ever refined anywhere on Earth would form a giant cube just 66 feet on a side. That may seem like a lot, but compare that with millions of tons of other industrial metals like iron that are refined every year.
Production of precious metals and gold in particular is highly localized. Nearly 80% of the world's gold production since 1900 has come from South Africa. Even within a large, diverse country like the United States, almost all production has come from just 3 states.
Mutual funds and ETFs are clearly the way to go if the commodities boom continues to take precious metals higher. Just don't make the mistake of investing too much in gold or silver. These lustrous metals look shiny, but in twenty years their cumulative returns will be anything but stellar.
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