Replies to post #253260 on SwingTrade Member Forum (SWING)

[BRIG_88]

BEST BOARD ON IHUB!!....here's how it works....Mikey works his ass off finding and DD'ing plays for the board.....then Rawnoc takes credit for them....and for a small remuneration on his part to me i affirm that it was Rawnoc that did all the work....now don't feel sorry for Mikey because he makes money cause he finds the plays early.....Rawnoc makes money coat-tailing Mikey.....and i make money cause Raw pays me to pump his his non-skills plus not kill him....everyone is a WINNER!!

[Rawnoc]

AEM tanked on earnings then recovered and rallied hard.

Missed all 5 analysts estimates on sales, $50 million below the consensus. Guidance stunk. Two top guys are resigning.

Their cash flow situation doesn't appear to be as good as they try to tout -- as they have begun tapping their credit lines hard.

Overall, the company is probably still a great company -- just not at this market cap IMO. So many better shape gold companies trade at far cheaper multiples without the problems, risks, uncertainities. I think it rallied on a nicely worded PR and overdue bounce I guess -- also increased dividend while tapping their credit lines. A recipe for trouble.

Wild card on the short side for AEM is if gold prices drop hard -- their biggest production mine they have going now has mining costs of over $1,000 an ounce for gold. Small percentage drops in gold are magnified profit margin and EPS cuts -- something the valuation cannot afford IMO.