Thanks for explaining your views and best effort analysis Eshmun. You acknowledge that SBM's share price is likely to rebound as results from higher gold prices applied to current production come through, and on that basis I would think that SBM is a buy in the near term. However, your thinking is predominantly long term, based on your analysis of mining info. Yet you are predicting a bust in the world markets as a result of years of monetary pump priming in 2-3 years. I am not wanting to debate when/if/how a bust will occur even if history shows that it surely will, sooner or later. You also acknowledge that in a market downturn the share price of gold companies will also be pushed down in the first instance, and I agree with that. I would think that currency issues and the traditional flight to gold for asset and risk protection will later result in a gain in most of those same gold companies, if they can survive any short term funding pressures. My question to you is, given the above rationale, why do you want to invest long term in any gold company and ignore making a near term play that is likely to be available with SBM? I doubt that you are any better at calling a market bust than other analysts and so you expose yourself to market uncertainties with stocks like RSG that struggle to lift their SP over extended periods of time whilst ignoring the gains from significant market fluctuations in other stocks.
SBM Price at posting:
$3.29 Sentiment: Buy Disclosure: Held
(20min delay)
