Well, what is interesting is if they can pay down another $200 million in debt over the next couple years, and then sell the two internet properties for $250 million. That would leave us with $500 million in debt, which could allow for an equity value back in the $5-10 range, I'm thinking, especially if print should stabilize on the ad revenue decline....which seems increasingly likely, since it is now down to 1/3 of total revenues.
Because I have no way of knowing it will go as low as $1. In fact, i think it is more likely that $1.50 or $1.25 is the bottom...so it's time to start entering NOW. It could easily start bouncing next week.
Disagree. This is the time to start entering. I've put 3% of my portfolio in this at a $1.57 average. I'll go to 4.5% at $1.25 and 6% at $1.
It's oversold....keeping in mind the lack of significant debt maturities until 2022, and fact that they are at 4.5x on leverage, with covenant permitting as high as 6.0.
This will bounce to $2.50....even if, in a worst case scenario, it goes to zero in 3-5 years.
Sentiment: Strong Buy
Laughable. We already know that Q1 production was blowout. There aren't going to be any surprises here.....except how much money they make....and how much debt they pay down.
The resistance to a breakout to higher prices is someone else. I have remained "long and strong"...still holding 5 million shares.
Loved the Q1 production report...and think a solid Q1 earnings, and then Q2 production in early July, could be a springboard to our next "major run" here. There will be more "believers," and people discovering this stock, over that time period. There will also remain a keen interest among potential suitors, imho.
Well, he admits he's an "apprenticetrader"....so your attacking him for being a legend in his own mind is rather asinine.
Sentiment: Strong Sell
You're not going to see any JV on Amisk at $1200 gold, that's for sure. Let's keep it reasonable here. There's enough reason to be enthusiastic here, without pie in the sky scenarios.
Sentiment: Strong Buy
Well, you make a fair point about growth over a 3-5 year time frame...but the notion that such growth is predictable here, or that it should take Rouleau a total of 5-7 years at the helm to right this ship fully, is part of the "make believe" reality. As it stands now, he has had over 2 years, has TOTALLY remerchandised the company...and is earning about a 6% ROE, having boosted overall eps from about 15 cents annually under Mason, to maybe 35 cents now. With the litany of DRAMATIC things he has done to "remake" this thing, why aren't we seeing more results....and more significantly, why is this FLIM FLAM ARTIST now suddenly talking about "low hanging fruit"? I say, with regard to TUES at least, that Rouleau is a fraud, at this point. But he is concerned about his past reputation, and doesn't want to go out with a DUD as his swan song. So he's "stalling for time." It's obvious.
"Much of the Street" is merely the "me too" mutual funds, and people that have "made money on Rouleau at Michael's" that have naively piled in here. "Just a year off" is a total rationalization. For you to ignore that he has had OVER 2 years to fix merchandising, and is basically PUSHING ON A STRING is, frankly, delusional. The improvement, to date, financially, has been NOMINAL, MODEST, and MEAGER.
Your looking at cost of capital is even more illogical. It's not about cost of capital in holding a stock. It is about OPPORTUNITY COST. Just because you are LAZY to find a better idea, or FEARFUL that after having your remaining money tied up here so long, you'd "hate to" pull out and "miss" something good....that is not a mark of a wise investor, to me. That is someone who is controlled by his emotions. A "negative" emotion.
$10 is not a bargain. $10 is more than fair valuation. 1 1/2x book, and 18x the 55-65 cents in EPS I expect them to earn NEXT year.
You should be paying attention to Becker Drapkin. They got out totally. And never got back in. They know that they were LUCKY.
Well, anything is POSSIBLE. The absurdity of Sterne Agee is that they would BELIEVE, when Rouleau has had over two years, and has BARELY moved the needle where it counts....and that is overall merchandise margin. The company should be back at 75 cents in EPS this fiscal year, minimum, to give Rouleau a BASE credibility. But we will probably be around half that.
The stock is worth $10. Tops.
Looks attractive. But I'm not in the name currently. A bit thin for me, these days. But great for smaller players.
I think what is going to make the difference here is q2 production. We've seen volatility the last couple quarters...disappointing q4..spectacular q1. Is q2 going to be 14,000 ounces....or 18,000 ounces? The difference between the two would allow the market to "decide" whether "something just over 65,000" is the number for this year on production....or whether management is "sandbagging," again, like last year, and they are going to beat the guidance on an "outsized" basis. Stay tuned.
This is also a great "head start" on the year, so I personally think that upping to 65,000-70,000 ounces for the year is reasonable.
The company should be ENORMOUSLY profitable in Q1. That is very likely to get us some additional attention, from those who are still not, quite, paying attention.
With gold back up to $1215, and the company's reserve grade up to over 7 g/t, I am increasingly comfortable that they will come in somewhere around my 10 cent EPS (Canadian) target for the year. Slap a 10-12 PE on that (probably conservative), and that gets you a $1.00-1.20 CAN stock, or roughly .80-1.00 U.S.
We may be digesting recent gains now....but I believe this equity has lots more to go. Best of all, it has the "Big Mo." YOU CAN'T ARGUE WITH GARGANTUAN FREE CASH FLOW.....and who ever heard of a gold miner selling at 6x current year earnings??