Thursday, May 27, 2010

What A Value Dichotomy

According to a report webbed by Resource Investor, there's a gold investment company with a current price-earnings ratio of 1.1. Its main holding, of Crew Gold, is worth more than its own market cap.

The company is Endeavour Financial, and it's selling at a huge discount to its net asset value. Since its a merchant bank/closed-end fund that puts its money in exploration juniors, it's a company that's easy to undervalue these days. According to the data on its Website, it's currently selling at a 53.4% discount to its book value per share.

It ain't the only one, either. Aberdeen International, a closed-end fund that gold exploration juniors like Crocodile Gold, is also selling at a 50% discount to its recent NAV.


How's that for a value dichotomy. On the one hand, PHYS is selling at about a 13% premium to its NAV even after that premium took a big hit. On the other, two exploration-junior closed-end funds (effectively) are sporting discounts that would be considered incredible for other industries. Value-oriented players may want to take note.

2 comments:

  1. Bullion Exchanges is a well known Precious Metals Retailer located in New York City's Diamond District.

    They have a large inventory of items such as, precious metals that range from the ever popular gold and silver to platinum and palladium.

    They are offering an enormous range of products appealing to first time shoppers and for established collectors.

    ReplyDelete
  2. eToro is the most recommended forex trading platform for newbie and established traders.

    ReplyDelete