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Detour GoldDGC.TODON'T BUYFeb 03, 2014Stock price when the opinion was issued
As of Feb 04, 2020. Market Open.
It is a higher cost asset. It is more volatile. They have a cash flow profile that will drop in a couple of years. The stock is off while investors plan to come back to it in a couple of years. You are buying it for the cost of the infrastructure. He would prefer to hold it for two years. (Analysts’ target: $20.44).
Similar to OSK. Part of the recent run is due to OSK possibly getting taken over. Likes the free cash flow on DGC and predicts 10% plus. The balance sheet does not give them the means to do this. They probably need more capital. If you have a long time horizon it probably has a much higher valuation in the future.