Silicon Investor (SI) -- The First Internet Community

To: SwampDogg who wrote (96096)	5/9/2012 7:39:19 PM
From: Aerofagia72	1 Recommendation Read Replies (2) \| Respond to of 115634

Truth is gold stocks are way way out of being value investments right now unless you are a gold bug who thinks gold is going to 5thou an oz in the next couple of years. I am amazed to see how these are supposed to be cheap on historic basis (talking of large cap names) of PE40, cash flow X 7 blah blah.... these all have to come down. I am not willing to buy any stock trading at those metrics when I hold OIL profitable companies selling at going forward cash flow metrics of X 1.2. Took my loose on GDX/GDXJ pain back in February and wont even look back at gold stocks unless their PE/Cash flow ratios compress by a magnitude of 50% and yields on those few that are paying any divy at all go up 50/100 % Still holding all my stash of Pesos and Maples for sure. That is a core holding that will only change hands when I pass away, but gold stocks? not yet, thank you