"Stronger earnings also lower valuations, making silver miners look more attractive fundamentally to big institutional investors."
https://seekingalpha.com/article/4417265-silver-miners-q4-20-fundamentalsThis makes no sense to me.
Anonymous
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Valuation = relationship between company profit and stock price.
Stronger earnings (more profit per share) lowers the valuation (ratio between profit and share price) is the statement that was made (which is sometimes true but often false; here are some examples).
Let's say the company has profit per share of $1 and the shares are selling at $40. that's a valuation of 40 (40/1).
Let's say the company doubles it's earnings per share to $2 and the shares are now selling at $50. That's a valuation of 25 (50/2).
Stronger earnings don't necessarily mean lower valuations. Often they mean higher valuations.
Let's say the company again doubles it's earnings per share to $4 and now the shares are selling like hotcakes at $125. That's a valuation of 31.25 (125/4).
Silver is a crappy investment. LOL...