Growing aggressively in emerging markets. Very cheap. Has chronically under performed and trading at its lowest valuations. Will benefit if interest rates rise, as he expects them to. Will be a very stable, low growth company.
Comes up on the screen all the time because fundamentally it looks cheap but he can't find the catalyst. Fold funds is basically negative every quarter. Very competitive industry.
Somewhere in the middle between cheap and expensive. He can come up with better oil stocks. Prefers natural gas to oil. Cheap natural gas prices are unsustainable.
Absolutely puzzled by the valuation the company gets. No debt, about $5 a share in cash, grows at 30% a year and trades at only 12X earnings. Very competitive sector but the market itself is growing substantially.
Short Selling from a Value respective. As long as fundamentals of a stock continue to improve, an expensive stock can become even more expensive. You have to try to find a company that you believe its fundamentals and fortunes are going to change. Find balance sheets that are weakening, cash flows are dwindling, declining margins and increasing CapX.
Struggled a lot because they did a couple of dilutive deals in a horrible market when they needed cash. Prefers Southern Pacific Resources (STP-X), which has a property next door and trades at half the valuation.
Great company, but not the cheapest. Merging with Quadra (QUA-T). Good management in both companies. Tends to be very few synergies when mining companies merge. Just seem to want to get bigger and be able to make bigger deals.(See Top Picks.)
Gold. Have done a fantastic job of developing a world-class, low-cost deposit in northern Quebec and have about 9 million ounces and will produce about 1 million ounces a year in 4 years. Strong takeover candidate.
This one will be up either 10 times or will stay where it is. Doing a sample test to see if they can mine very low-grade nickel and iron and separate it using a magnet/floatation rather than sending it to a smelter. It would then go directly to a steel mill. Very high risk.