najdorf

How Low Can Mining Stocks Go? (Part II)

qwerty - Have you even looked at metal prices? Most are getting close to 2002 levels. Have you looked at how much money mining companies were making at those prices in 2002? What makes you think that the recent expectation of sky-high pricing has led them to operate at a level of efficiency that will allow them to profit more successfully at those low prices? What makes you think that debt taken on to do acquisitions at higher prices will not cripple the companies?

I'm not saying I know where metal prices or mining stocks are going, but there certainly are some risks to worry about.