How Does SQM Compare to Its Peers?
SQM has outperformed its peers based on PE ratio. The PE ratios of SQM, POT, MOS, and CMP are 20.3x, 11.5x, 9.6x, and 15.4x, respectively, as of November 17, 2015.
Sociedad Química y Minera de Chile (SQM) has a market cap of $5.7 billion. After the company’s 3Q15 earnings report, SQM fell by 5.6% to close at $18.49 per share on November 17, 2015.
Looking ahead, SRC said it has seen the early signs of a recovery in the resource sector, and expects it to continue to be a challenging environment for many commodities-focused businesses throughout 2014 and into 2015.
Sprott Inc.’s founder, Eric Sprott, is well known among financial circles for his successes in the investment sector. He is also known among Aboriginal circles for his support of First Nations peoples.
Sprott Resource Corp., SRC (SCPZF), employs a disciplined approach when looking for investments. You can take this with a grain of salt but the company lists the fact that they have done due diligence on over 1,000 deals.
Our experience with Steve Yuzpe has been an extremely favorable one and we have confidence in his abilities to lead the company going forward.
While Sprott’s share price has been bottoming out due to the dividend cut, Long Run Exploration (LRE.TO), Sprott’s largest holding, has seen its share price increase over 30%.
SRC passes our 3-M’s test (management, moat, and mis-pricing). Our analysis tells us that the company is worth north of CAD$3.50 based on its NAV.
Interest in the mining and mining services sector among public investors is extremely out of favor, which provides the backbone for this opportunity.
Geodrill operates in one of the most lucrative areas of the drilling industry and is led by a results-driven, shrewd CEO who has over 20 years of direct industry experience.
Geodrill is a company to keep an eye on. We have used numerous metrics to prove how undervalued the business is currently and the level of profit potential it offers.
As investors, we should position ourselves to be rewarded if we are right, but not suffer painfully if we are wrong. If the cycle looks to be turning, turn with it
Geodrill is grossly underrepresented in relation to competitors. Analyzing GEO in relation to the average of comparable companies, we see this.
The mining and mining service industries have been caught in a severe cyclical downturn that could be setting the stage for a phenomenal buying opportunity.