What is not to like?, page-20

Umm...... I have expressed in posts on the NST threads before about the inadequacy of using DCF models for trying to value a listed company with vast operations, especially in the mining game. Every time one of these DCF model valuations have been promulgated they have proven to be vastly inadequate and under estimate future value as time goes by.

DCF is great for doing the financial values for projects, but is far from the panacea when it comes to doing holistic values for large companies.

Caveat emptor when considering a DCF value from a financial analyst because there are just far too many variables, known unknowns that need assumptions plucked, and more importantly unknown unkowns that frequently crop up in this mining game. Plus these analysts need to add discounts and premiums for some of these variables that often don't get into the ball park....... I.E. the management competency premium being an important factor to consider.

Regardless, the commentary from UBS in the quoted post does remind us of the ongoing challenges faced by mining companies, none the least being goldies. Thus the point made by @CashedUpBogun about having a competent management team is near the most important consideration when choosing stocks for investment IMHO. It is skilled people that make money and competence behests success and that is the track record of NST from day 1.

There is a lot of bs baffles brains in the financial arena and so many analysts are full of it. They do have an influence on sentiment though because it is very hard for most investors to master the art of doing valuations for themselves. Plus value is relative to time in the market as well, but that is more important for traders than investors; plus technicals have far more importance in play than fundamentals over the short time. Sentiment rules the markets in the short term, but fundamentals win out in the end.

Thus the NST SP may or may not be cheaper tomorrow or next week or even next month, but my long term valuation assures me that today's SP will be much cheaper than it will be in a few years........... that is what I call investment grade.

Cheers