Mining Company Valuations
There was a great comment in response to my capstone research about how capstone compares to other mining companies. I will try to do a more thorough comparison soon but so far here is what I got using globeinvestor's neat filter tool:
I had to cut out some information because it would take too much space but according to this chart, p/e's for similar revenue generating companies as capstone have p/e's of between 12 and 29.
So it does seem to prove that capstone is quite undervalued.
I do remember the Coffin brothers talking about Eurozinc having a 4 or 5 forward p/e so it may take the market a while to realize the true worth of these juniors who are entering production for the first time.
But let me give you 2 quick examples of great picks that were quite similar to capstone: Silvercorp and Paladin. I've been recommending them and holding shares for many months now. Look at their charts to see what I mean.
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