Yamana Gold Inc (AUY)

[SeriousStockStoke]

Agnico Eagle is a great company, but an expensive stock IMO

I'm really surprised that Cramer recommended buying Agnico at its current valuation. While AEM's earnings estimates are too low for 2008 I still feel that Yamana offers a better risk/reward ratio based on it's valuation. I've learned a lot from Jim, but when it comes to gold and its fundamentals, I don't think it's his strongest area of expertise in my opinion. Then again, Agnico operates in one of the most politically safe countries for Gold in the world, so maybe the stock could obtain a much higher multiple.

Agnico is a fantastic company. It's just trading at too rich a multiple for my tastes. If gold were to pull back sharply, AEM could be subjected to more downside risk than AUY.