Worst Gold Miners, Best Gold Miners
I was looking over some of TigerPack's picks today and noticed the Tiger appears to be very bearish on gold miners. One pick that particularly stood out to me was Allied Nevada Gold (ANV) which seems to be selling at insane multiples right now. There is speculation that their deposits might be much larger than believed, but even if you triple the book value of their "Mineral Properties", that would still leave them with a rather high price-to-book ratio of around 2.8!
I'm not completely convinced that gold's run is over. I've been neutral on it for the past several months, but I believe we are starting to see signs that inflation could hit us big-time in the next year and this makes me worry about going short on a gold miner. If I were to play the gold miners, I'd rather hedge my bets and go one long and one short. So that brings me to the question: which gold miners are the most attractive right now and which ones are the least attractive?
Anyone have any opinions on the matter?
Is anything more overvalued than ANV? Am I missing something on ANV? What's the cheapest gold miner out there at this point?