These analysts basing their buy/sell off KINROSS P/E alone are really dumb.
This particular analyst believes KGC is a sell at under $1.80 because P/E is 120 and forward P/E is 45.
How dumb of a metric is that to value the company on the worst ever time for P/E.
If anything the P/E shows how strong KGC is at this time.
It actually has a P/E!!!
Lots of gold stocks are negative and have no P/E at this time.
Market cap and book value is the correct way to look at this company right now, and it's way the heck oversold by all measures.
The stock has went up 15% on absolutely nothing this week.
Wait until Gold goes up, wait until AISC goes down, wait until the USD stops rising, wait until the CAD stops falling.
By the way, sell me more of your shares.
I just started buying TSE:K at $2.19 and I'm kind of sad that it's up to $2.40 already, as I want to buy more now.
So, please drop the price some more. I would like to double up at under $2.19 on the TSE.
Thanks weak Kinross shareholders!
I have no intentions of selling my shares for years to come. Down = buy more, Up = hold and wait
Sentiment: Strong Buy
WARNING: The MEGA BEARISH TECHNICALS clearly indicate 200 an ounce or LOWER for the ZERO VALUE gold bullion puke, by close of 2015, and the DESERVED shutdown of 95% of the USELESS industry!!! GOOD RIDDANCE!!!!
Interesting fact: even though price of gold has fallen from $1300 to $1100, it still costs me the same $1500 (CAD) to buy an ounce as it did 6 months ago.
Because the CAD has weakened so much vs the USD.
I believe all currencies are experiencing near the same thing.
So, although Gold "appears" weak right now, it still costs the same to everyone except US.
That's been baked in the whole time, and even more so back when the Ukraine situation was at its peak stress level after the Malaysia Air shoot-down. Does anyone care to make a guess as to what gold price would equate to a $10 KGC price. I gotta say that without major euphoria like we had back in 2008, gold would have to be trading at $5,000/oz to see this stock hit $10. I doubt that happens in my lifetime - more likely to trade below $.50 before it trades above $5. LOL
The biggest threat for Kinross is the fact that the lowest cost mines are situated in Russia and it plays a big role in the price of stock. Don't forget 28% of total production comes from Russia.
Yep, that is true in just about any sector. Diversification will most likely keep you from losing everything but the chance for big rewards are limited.
They have $1B+ in cash and are currently still free cash flow positive. It would take a significant and prolonged slump in gold price from these levels, without a corresponding drop in oil and foreign currencies before the scenario you describe comes to pass. Having said that, nothing is impossible.
I'm guessing we start to see some consolidation happen within the industry with the possibility of accelerating if gold price continues to drop.
That's true, GDX is down huge because the whole sector is down huge.. My point is that the GDX can't go bankrupt, but KGC can. The GDX takes a hit with the devaluation of the stocks it holds, but you are inherently diversified within the mining sector by owning it. The draw of taking a solitary large position in a single miner like KGC is that if you happen to be right, the upside could be much higher than the GDX, but you pay a price for taking that extra risk, like risking losing the entire investment.
Logical move since GDX seems to hold the cream of the crop in miners and Gold and Silver Royalty companies but that being the case, that hasn't kept the fund from dropping about 80% since 2011.
…the huge enormous share float. 1.1B shares. Shareholder value was so diluted by additional share offerings during the Tye Burt era, one has to wonder what gold price would equate to a $5/share on this stock. Any ideas?
I have been contemplating liquidating all KGC long to an equivalent GDX position because this stock has become so risky. This company could easily be bankrupt in a few years if the price of gold drops, they burn through their cash, and are unable to increase reserves. It is not unrealistic to see this company and others like it becoming insolvent. Rather than consolidate, as I thought this industry would do the last few years, these miners have hunkered down to see if they can survive the gold downturn and let competitors die their own deaths. It seems logical to me that if one owns the gold miner index, at least if a company in that index dies, it is replaced by another. In other words, the GDX diversifies across a group of miners. I can imagine a wave of bankruptcies coming in this industry. That may the only path to the inevitable consolidation that needs to occur.
They have to make sure the company officers still make their millions in salary while the shareholders get roasted. Still the -.01 EPS is exactly what was expected, and they beat on revenue by a tiny amount of $3M, so I'd say that it really shouldn't have much of any impact on the stock price tomorrow. Unless the market was expecting something much different than the estimate (I doubt it). This stock is gonna move with the gold price for the foreseeable future. It would appear by the price action the last couple days that it has finally stopped sinking independently to the gold price, so if gold goes up, it should go up right along with it (finally), and it should sink if gold heads lower. The price action in the miners looking at the GDX the last couple days indicates they are ready to bounce nicely if gold gives any indication it is finished dropping. Unfortunately that is the big mystery. What will Yellen do with the rates and what is gold going to do in the meantime and down the road. Unfortunately, it is very difficult to predict. The thing that is most troubling to me about KGC is that if gold languishes down here (or lower) for many months or even years, KGC is going to deplete away their reserves, and it seems they have nothing going on to acquire new reserves. That means there is a good chance more pain could be in store until this industry finally consolidates as it desperately needs to do and will eventually have to do in the face of dead gold.
Biggest disaster trade for me this year… KGC was abysmal! The guys over at Ultimate Stock Alerts (look for them in Google search) helped me to make back some money