Oct
30
2008
Background to this Series of Posts
This is the 14th in a Series of 17 Posts that will be published on this Blog each Tuesday and Thursday from September 16 to November 11. All 17 Posts will be filed under the Blog Category ‘Valuation of Mining Companies’. For previously issued Posts in this Series click here. We hope you find this Post Series useful.
Posts #11 – #16 of this Post Series discuss Valuation Methodologies adopted by stock market investors, stock market analysts, corporate acquirers, merger and acquisition intermediaries, and business valuation experts when they value shares in mining companies. In these Posts the following terms have the following meanings, where each is ‘point in time specific’:
1. Enterprise Value: The total value of a business including both its interest bearing debt and equity components.
2. Equity Value: The total value of the shareholders’ equity of a business, where shareholders’ equity is stated at its fair market value, not at its ‘book’ or ‘carrying’ value.
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Oct
29
2008
Background to this Series of Posts
This is the 13th in a Series of 17 Posts that will be published on this Blog each Tuesday and Thursday from September 16 to November 11. All 17 Posts will be filed under the Blog Category ‘Valuation of Mining Companies’. For previously issued Posts in this Series click here. We hope you find this Post Series useful.
Posts #11 – #16 of this Post Series discuss Valuation Methodologies adopted by stock market investors, stock market analysts, corporate acquirers, merger and acquisition intermediaries, and business valuation experts when they value shares in mining companies. In these Posts the following terms have the following meanings, where each is ‘point in time specific’:
1. Enterprise Value: The total value of a business including both its interest bearing debt and equity components.
2. Equity Value: The total value of the shareholders’ equity of a business, where shareholders’ equity is stated at its fair market value, not at its ‘book’ or ‘carrying’ value.
Continue Reading »
Possibly Related Posts:
Oct
26
2008
I received the following comment by e-mail (nothing to do with this Blog) from a long-time friend who is a successful Investment Advisor with one of Canada’s larger wealth management groups. The business model of the group he works with is to attract money from (largely) individual investors into ‘managed pools and segregated securities’, to screen and select external money managers based on prior performance and other criteria, and then invest client’s money in a globally diversified group of pools that are sector diversified.
“Good day. I have been searching for some time for a rather concise summary of the background to the 21st century tsunami in the credit markets. Investors have suffered miserably for the past 19 months and deserve to know what and who played a part in setting the stage and controlling the play. The media has not been very forthcoming to date with investigative journalism. The answer should come as no surprise – organized activists and an accommodating US political party. If the Polls are correct, this same political party may well control the entire US government after November 4th. What further fiscal management mischief will they bring to America and the world? Cheers.”
I think readers of this Blog might be interested in my e-mail response to him, which follows: Continue Reading »
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Oct
24
2008
As many of you may know, Alan Greenspan testified yesterday before a U.S. Congressional Committee. As reported by The Globe and Mail (Canada’s principal national newspaper) Greenspan appears to be, aside from anything else, an honest man. He is reported to have testified that:
“Something which looked to be a very solid edifice (a reference to the U.S. Banking System) and, indeed, a critical pillar to market competition and free markets did break down. … And I think that … shocked me. I still do not understand why it happened.”
It strikes me that for Greenspan to say he ‘still doesn’t understand why it happened’ indicates naivety and a lack of street sense on his part. Psychologists broadly believe that one’s value system and fundamental views largely are formed in the first five years of life. Greenspan was born in 1926, an only child, and a young child during the years of the Great Depression. Evidently of very high intellect, he seems (according to his writings in his recently published book ‘The Age of Turbulence’), largely to have been sheltered from hardship during those years. To me, who grew up with wonderful parents but without a ‘silver spoon’, the answer to ‘why’ is obvious and should have been foreseen. Broadly speaking:
• individuals in this world act first and foremost out of self-interest;
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