I'd be interested to know what conservative bonds, corporate and/or government, you are holding? If the markets deflate into bigger double dip (high probability) then the value of them will likely drop some or even a lot should debtors show signs of default. If the markets hyperinflate, then will the gains give you a positive "real" return on interest? I believe we are in for a very tough market going forward as there are few quality investments available that will increase or at least maintain your purchasing power.
Nevsun Resources, $6.78 on the AMEX, is on my watchlist of 65 miners that are in or nearing production. They have a high quality asset with planned production over 400koz this year with cash costs, net of byproduct credits and royalties, around $200/oz. Despite robust project economics, the big concern I have is with valuation since NSU's interest is just 60% with the government owning the other 40%. Taking $1400oz gold, annual free cash flow on 60% interest is ~$288M. With a fully diluted market cap of ~$1.3B net of working capital and in the money derivatives, the FCF multiple is 4.51x which is fairly cheap since the company should yield 8x or $12.03 per share.
However NSU didn't make the cut in my portfolio of 22 stocks which I think have the potential to earn 100+% in 1-2 years. PTQ ranks #3 for me, but I did not adjust for the free PDI shares which would make it #1. With my PTQ target price of $4.09, I am comfortable with it representing 21.71% of my stock portfolio. Should the underlying fundamentals improve, that target price might even get an uptick.
News 
Market Data 
Discover 
AI
