Friday, April 16, 2004 9:12:42 AM
Two Ratios: Semafo(SMF.TO)/Etruscan(EET.TO) and RANGY/GOLD
A chart of one stock shown in multiples of another's price, or ratio chart, shows relative performance.
Etruscan Resources (EET.TO) and Semafo (SMF.TO) share the Samira Hill and Libiri gold projects in Niger, said to have 2 million oz. resources, and to be the first commercial gold mine in Niger. Each has separate, important gold properties in Burkina Faso, Ivory Coast and other West African countries. Semafo is controlled and run by Managem, Morocco's biggest miner, and it seems to be a francophone company.
I've been interested in Etruscan's and Semafo's gold operations in West Africa, but not in Etruscan's South African diamond mining. One way to "subtract he differences" is to look at the ratio. Semafo has done worse and is now (April 16, 2004) at the bottom of its range compared with Etruscan:
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I don't own any of either company, but I'm mulling over buying some Semafo. The other day it dipped deep.
Another ratio chart is Randgold & Exploration (RANGY) in terms of Randgold Resources (GOLD); the former, RANGY, is a South African holding company (run by the controversial Kebbles) which owns -- among other things -- a big piece of the latter, GOLD, which in turn has interests in the Morila and Loulo gold mines in Mali and exploration properties in four other West African countries. GOLD also has chutzpah, having bid against Anglo for Ashanti Goldfields last year. I couldn't decide between them, but then (unfortunately, so far) chose RANGY. I'm thinking of switching to GOLD but the ratio looks unfavorable now (April 16, 2004):
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FL
P.S. I think Trading Fool should add GOLD to the official list here because of its exploration properties. And reconsider Moydow. The "show all charts" link no longer matches the list.
A chart of one stock shown in multiples of another's price, or ratio chart, shows relative performance.
Etruscan Resources (EET.TO) and Semafo (SMF.TO) share the Samira Hill and Libiri gold projects in Niger, said to have 2 million oz. resources, and to be the first commercial gold mine in Niger. Each has separate, important gold properties in Burkina Faso, Ivory Coast and other West African countries. Semafo is controlled and run by Managem, Morocco's biggest miner, and it seems to be a francophone company.
I've been interested in Etruscan's and Semafo's gold operations in West Africa, but not in Etruscan's South African diamond mining. One way to "subtract he differences" is to look at the ratio. Semafo has done worse and is now (April 16, 2004) at the bottom of its range compared with Etruscan:
I don't own any of either company, but I'm mulling over buying some Semafo. The other day it dipped deep.
Another ratio chart is Randgold & Exploration (RANGY) in terms of Randgold Resources (GOLD); the former, RANGY, is a South African holding company (run by the controversial Kebbles) which owns -- among other things -- a big piece of the latter, GOLD, which in turn has interests in the Morila and Loulo gold mines in Mali and exploration properties in four other West African countries. GOLD also has chutzpah, having bid against Anglo for Ashanti Goldfields last year. I couldn't decide between them, but then (unfortunately, so far) chose RANGY. I'm thinking of switching to GOLD but the ratio looks unfavorable now (April 16, 2004):
FL
P.S. I think Trading Fool should add GOLD to the official list here because of its exploration properties. And reconsider Moydow. The "show all charts" link no longer matches the list.
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