Taking the Other Side on Seabridge
By Eric Jackson
There are two sides to every story -- or at least there should be.
Over the weekend, Bill Alpert of Barron'sprofiled two junior gold miners: NovaGold Resources (NG - commentary - Trade Now) and Seabridge Gold (SA - commentary -Trade Now). Both are Canadian gold prospectors with $1 billion market capitalizations. Both are at development stage. As such, there are no revenues and earnings to peg valuations to. Investors have only the estimates of gold deposits to go on, and the article makes the point that these estimates are not yet a hard science.
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Yet the article goes on to point out a number of potential problems with Seabridge Gold without telling the other side of the story. I hold a long position in Seabridge, so I obviously see this topic through that lens. Nevertheless, I want to rebut some of the problems of the Barron's article.
