Q: Over the last month AGI has benn quite week while the price of gold has hit record highs.Theoreticaly,if this company was to be bought out by a larger one,what would be it's price to book and how much of a premium would it fetch? I am comfortable hanging on to it as I see it as a well managed cie., with strong growth potential.
Many thanks,
Jean
Many thanks,
Jean
5i Research Answer:
AGI is up 68% in the past year, so some price consolidation can be expected. Book value is only in the $8 range, but a takeover we think would have to be in the $35 range to gain control. Growth and cash flow are solid. We would not see it as a sell today.