For stock market experts: Do you think investing in Yamana Gold Inc. (AUY) is a good idea?

Question

On Yahoo! Finance, the last trade was made at $10.00. The 1 year target estimate is $19.31. Does this 1 year target estimate mean what Yamana thinks they will be at or what Stock Market people think it will be at?

Answer 1

IMO any of the large gold mining companies are a good investment. Even if we've entered a bear trend for gold prices (which is up for discussion) all these stocks are valued well below where they should be. Fear and margin calls has crashed these prices to a level which could easily yield a 20% return in a month or so.

The way I see it, if we're in a bull market, this is a great time to buy seeing as it's a huge dip.

If we're in a bear market, margin calls and fear has driven these prices well below value and so we could get a good return..even if it's just on a dead-cat-bounce.

Either way I would say good buy.

Answer 2

gold is passed, energy and financials have the most long term growth potential..they can't estimate a stock's price, they can only show what it has done in the past

Answer 3

The target is what analysts expect it to be at, not the company.

If you trust the analysts and have done a little fundamental analysis homework, then go ahead and buy it.  The value of gold will probably rise in respsonse to the weaker dollar.