This is the first time I have looked at AU and I can`t understand some of the stats on it such as trailing PE of 1,400 forward PE of 4.5, Book Value of 0.14 per share cash on hand 0.2 cents and a Market Cap twice that of XOM. At face value ALL of the other Gold Miners appear to be a far better investment. Does anyone understand these Mining Stocks because I certainly Dont.I bought NEM a couple weeks ago because of the yield and the price per share seemed right even though I SWORE I would NEVER BUY NEM again because both times in the past I lost money on NEM. So whats the story on AU. Anyone?
BHenning here is your real answer. Yahoo Finance has the wrong number of shares outstanding for AU. Just look at the market cap...it's almost $1trillion. We know that isn't true because Exxon and Apple are the 2 biggest companies in the world by market cap.
I believe AU's outstanding share count is 100x smaller than the 38b reported on Yahoo finance. That would raise your book value to ~$14.00 per share, and the other metrics will look more reasonable too.
Do research. I just read an M&A press release from AngloGold Ashanti's last quarter. That's how I figured it out.
There are many traders/message bloggers who haven''t a clue what they are talking about. This other guy who responded is bullish on the company, but couldn't tell you that the share could was off by 100x. Uneducated investors.....:)
I appreciate the reply and the valueable information. I must admit I`m guilty on occasion of not doing enough research on stocks that I pick. This may sound crazy but I get most of the information I need from people on message boards who know what they`re talking about. They are easy to spot because they generally talk facts and figures but most importantly they don`t have an agenda in their opinions.Again thanks.