LG-- question about NEM

[Goods]

LG, I'm looking at NEM and not sure what you like about it, outside of the 50 day MA crossing over the 200 recently on a 6 month and 1 yr chart. But on a 2-5 year chart it's the opposite.

I'm seeing a 150x P/E and 65% liability to current assets although long term numbers are better.

I also see a triple top Feb 22, Sep 24 and Oct 15 right around $48.40.

Not saying it's a bad buy, I'm just missing what you're seeing. Volume's been up the past couple months. Granted, I know nothing about options. Can you fill me in?

[The Little Giants]

Goods, in all honesty it would take me a long time to break down all the parameters I looked at to come to the conclusion that I believe NEM is a long term buy, but in short:

Everybody looks at things with a different perspective. You say triple top and I say double bottom. You say a current P/E of 150 and I say that current P/E is a fairly useless statistic (their forward looking P/E is 26). You see 65% liability, I see a profitable company with close to 2 billion dollars in cash.

A clear top was put in in Feb 2006 and you can draw a perfect downtrend line since that time. That downtrend line has been breached which is another reason why I believe the stock will be a good long term hold. Also, the analyst ratings on this stock are all in hold, neutral, underperform, and sell categories. Keep in mind that most analyst will not even list stocks as sells. The point that I am getting at is that the analsyt ratings can only go up from here which would create positive news and add to any upside momentum. Stocks move in cycles and this one seems to have just come out of a downcycle.

I've seen this type of set-up many times before and I'm very confident in NEM over the next 6-12 months.