As I said last week, while I don't see anything really cheap for the vast majority of stocks, precious metals are probably the only sector with a great valuation at the moment. I'm aggressively buying. I'm sure that I would be kicking myself 6 months from now if I did not buy now. In addition to RGLD and SLW, one middle size gold company, Iamgold (IAG), is a screaming buy for me. It is a Canadian company that is already productive and profitable. People are just stupid in dumping its stocks at the moment, which creates a great opportunity to pick up shares of IAG if you are courageous enough. Here are a few facts about IAG:
- Its share price plunged over 60% in the past half a year, from $16 to less than $7 at the moment
- As the result, it is currently 30% discount to its book value with a book value at $9.9
- P/E: 7.78
- It has cash of 2.21 per share (32% of its current share price)
- Profit margin: 20%
- Dividend yield: 3.7%
This sounds really great to me and I'm buying when others are selling.
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