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written by reader Anti-First Majestic Report

By chatyakk, September 1, 2016

What do you all make of this piece? http://www.kerrisdalecap.com/wp-content/uploads/2016/09/First-Majestic-Silver-Corp.pdf
Pretty negative view of Keith and his companies. I sense some bias and also some fundamentals. Anyone with more experience care to chime in? I have them as part of my holdings, albeit down now… Never heard of this group before.

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hendrixnuzzles
5 years ago

$AG First Majestic…long but reconsidering….Wow, thanks, chatyak. The author seems really pissed, but his facts may be right. Have to check them, he gives a lot of data.

And for sure, $AG has gone up in price way more than other silver companies. And honestly, I did not see any fundamental reason for it.

If Neumeyer has done a pump job on everyone, I’ll plead guilty to being taken in hook, line and sinker.

I do not have many silver positions but AG is one of them, and
I am going to look at it again real fast

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hendrixnuzzles
5 years ago

$AG…attention chatyak…short version: I agree AG is overpriced, although I did not use much of the data in the report and certainly would not go short on it. Nor did the author’s attacks on Neumeyer have much impact on me.

I took First Majestic, Coeur, Pan American, Tahoe, Hecla, and Silver Standard and just looked at conventional company metrics.

PRICE TO BOOK…PAAS, HL, TAHO, and SSRI and are between 1.56 and 2.01. AG is at 3.16. (CDE is at 4.17)
PRICE TO SALES…all are between 3x and 6x, except for AG which is 7.76.
PRICE/EARNINGS….they all suck.
PRICE/CASH FLOW…they all suck
NET PROFIT…they all suck, but AG, CDE, and SSRI really suck; it may be because of writedowns or depreciation or some other thing, can’t tell.

So why did I buy the thing in the first place ? Because I wanted a position in a silver mine, I was impressed with Neumeyer, and I felt that in an environment of rising prices
AG would be able to expand production.

I will make some other observations in a post entitled
WHY I HATE MINING STOCKS on the thread I moderate,
Gold Bull Investments for the Next Leg Up.

Thanks for the post !

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