Monday, September 13, 2010

Will Yamana Gold (NYSE:AUY) Every Recover?

Yamana Gold (NYSE:AUY) continues to be the gold mining stock that could and should, but doesn't.

Investors have lost interest in Yamana when it started to downwardly revise production targets, and while recovering some, it still remains flat, and seemingly undervalued.

If you acquired shares in Yamana in November of 2008, you would be happy, as it had dropped to $3.60, and closed Friday at $10.14. But if you would have bought it in November of 2006, you would have taken a loss after holding it for four years.

Considering the amount of proven resources in the ground, it remains puzzling as to why Yamana doesn't have a higher valuation or amount of investor interest.

Taking into consideration the price of gold alone, and not their copper resources, this stock should be much higher.

It could be that gold investors consider other mining stocks as better positioned to take advantage of rising gold prices.

Either way, Yamana is definitely worth watching and investigating further, as the share price should catch up with its resources sooner or later.

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