Q: what do you think of these companies ? Thanks Phil
5i Research Answer:
JAG hasn't created much shareholder value in its time. The stock is WAAAY down from historical peaks, and down 50% in the past year alone. It operates mines in Brazil, and is profitable. It has $14M net cash right now and is cheap at 14X earnings. Despite its past, we think it looks a bit better these days. EPS is expected to grow nicely this year. There are big sector and small cap risks here, but we would give it an OK rating based on today's price and near-term prospects. EQX is much larger and more expensive on valuation. After a weak couple of years better growth is now expected. It is leveraged, but debt is at an 'ok' level. This does add some risks. Insiders own 10%. We would prefer it over JAG by a wide margin.