AEM: I Wouldn’t Buy It Here With Your Money
July 1, 2008 11:45 PM
I must be very confused on AEM. I understand that it trades with the price of gold and is almost a stock proxy for it, but please. It has a 72 PE and is up on pure speculation about gold. While i agree that it is possible for the dollar to be near worthless at some point, buying this here makes no sense and is extreme risk, IMO.
This is another case where if you make trades on valuation you will likely get crushed. Is AEM worth $75? I would almost say no chance, possibly not even half. Does it matter? Noooooo. People could bid this thing up to who knows what if gold clears its high. Someone will likely be left “holding the last card” on this someday. I would not touch it.
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