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Is Now the Time to Buy Antofagasta?

http://www.fool.com/investing/general/2013/03/01/is-now-the-time-to-buy-antofagasta.aspx

Rupert Hargreaves
March 1, 2013

LONDON -- I'm always searching for shares that can help ordinary investors like you make money from the stock market.

So right now I am trawling through the FTSE 100 and giving my verdict on every member of the blue-chip index. Simply put, I'm hoping to pinpoint the very best buying opportunities in today's uncertain market.

Today I am looking at Antofagasta (LSE: ANTO) (NASDAQOTH: ANFGY) to determine whether you should consider buying the shares at 1,075 pence.

I am assessing each company on several ratios:

  • Price/Earnings (P/E): Does the share look good value when compared against its competitors?
  • Price Earnings Growth (PEG): Does the share look good value factoring in predicted growth?
  • Yield: Does the share provide a solid income for investors?
  • Dividend Cover: Is the dividend sustainable?

So let's look at the numbers:

Stock

Price

3-Yr. EPS Growth

Projected P/E

PEG

Yield

3-Yr. Dividend Growth

Dividend Cover

Antofagasta

1,075p

87%

12.5

N/A

1.2%

100%

7

The consensus analyst estimate for this year's earnings per share is $1.32 (no change) and dividend per share is $0.50 (up 150%).

Firstly, I should mention that although the consensus analyst estimate for this year's dividend is $0.50 per share, Antofagasta has con