Safehaven | Fun Statistics for the Relative Value Investor

July 28, 2005

Fun Statistics for the Relative Value Investor
by Adrian Burridge

This article originally appeared in the June 10^th, 2005 edition of CanadianInvestors.com Inc. Investor

Some fun statistics for those who invest using relative value.

Every 3 cent move in Intel (INTC:US) is greater than the entire market cap of Miramar Mining (MNG:US)
Every 1.5 cent move in GE (GE:US) is greater than the entire market cap of Nevsun (NSU:US)
Every 5 cent move in Microsoft (MSFT:US) is greater than the entire market cap of Cambior (CBJ:US)
Every 25 cent move in Procter and Gamble (PG:US) is greater than the entire market cap of Eldorado Gold (EGO:US)
Every 16 cent move in Exxon Mobil (XOM:US) is greater than the entire market cap of Agnico Eagle (AEM:US)
Every 35 cent move in Pfizer (PFE:US) is greater than the entire market cap of Goldcorp (GG:US)
Every $4.00 move in Google (GOOG:US) is worth more than the entire market cap of Pan American Silver (PAA:T)
Every $0.75 cent move in Coke (KO:US) is worth more than the entire market cap of Kinross Gold (KGC:US)
Every $0.10 cent move in Cisco (CSCO:US) is worth more than the entire market cap of Crystallex (KRY:T)
Every $0.16 cent move in Dell (DELL:US) is worth more than the entire market cap of Golden Star (GSS:US).

I wonder if I started up a hedge fund that shorted the 10 most overvalued stocks like on this list and bought the 10 gold stocks listed how I would do?

Buy all the gold you can carry.

Disclosure:
Long Cambior (CBJ:T), Eldorado (ELD:T), Kinross (K:T) warrants, Cumberland (CLG:T), Northgate (NGX:T), Rio Narcea (RNG:T), Nevsun (NSU:T), Imperial (III:T), Golden Star (GSC:T), Agnico (AGE:T), Linear (LRR:T), Cross Lake (CRN:T), cash, gold, silver at the time of writing.

Adrian Burridge
CanadianInvestors.com

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