Globe's Bowman bullish on Goldcorp, others

2014-01-29 06:55 ET - In the News

See In the News (C-G) Goldcorp Inc (2)

The Globe and Mail attempts to identify gold stocks that stand out from the crowd in its Wednesday, Jan. 29, edition. The Globe's Michael Bowman writes in the Number Cruncher column that he only considered gold companies listed in Toronto that are over $500-million in market capitalization. As well, he eliminated royalty companies. Enterprise value divided by the earnings before interest, taxes, depreciation and amortization (EV/EBITDA) is used to determine the value of a company. This metric looks at a firm the way a potential acquirer would, because it takes debt into account, while other multiples, such as price-earnings ratios, do not. A company with a low EV/EBITDA could be viewed as an attractive takeover candidate. Earnings per share (EPS) is generally considered to be the single most important variable in determining a company's share price since it is an indicator of a company's profitability. Gold stocks that stand out for Mr. Bowman are Goldcorp, Kinross Gold, Eldorado Gold, New Gold, Osisko Mining, B2Gold, Iamgold, Alamos Gold, China Gold International and Aurica Gold.