July 18, 2007

Northgate Minerals

From the Fool:

With the fact that we'd have a six bagger if NXG hit the industry average P/E (which is above 30), I just like the upside. If they grow earnings by 15% annually for the next five years ... and are priced with an extremely reasonable P/E of 10 in five years, the price would be $11.28, close to a quadruple from today's prices. This company isn't going anywhere short-term with [a] strong balance sheet and strong margins, so I think it is well worth the risk for the long-term.

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