Gold is under pressure after it couldn’t break above the previous major top and the gold stocks couldn’t escape the same fate. Last time I filtered the gold stocks by ROE and in this piece, I would like to make an update on their price performance for you.
To remind you, the top stock tickers are ABX (Barrick Gold), SBGL (Sibanye Gold), IAG (IAMGOLD), GSS (Golden Star) and HMY (Harmony Gold Mining).
Chart 1. Top Gold Stocks Vs. Gold: The Brightest Star Is The Golden Star
Chart courtesy of tradingview.com
Gold topped on the 8th of September at the $1357 level, and that’s where I have started the chart. Gold (black) lost more than 4% from that peak. Three of the five stocks lost more in price than gold did: HMY (green) fell for more than 13%, your favorite (see chart #3) ABX (red) dropped almost 21%, and the worst performer is IAG (purple) with -21% drop, which was the top gainer in the previous update. Continue reading "Gold Stocks Are Under Pressure Except For One"→
Gold broke above both daily and monthly resistances, and we could witness a further strong move to the upside. In this post, I would like to find out if there are gold stocks with upside potential to follow the strengthening metal using my unique selection criteria.
When you buy stocks, you become shareholders of the company participating in the equity. That is why this time I decided to sort the gold stocks by ROE (return on equity) and chose the top 5 (in the table below) to analyze. The range includes stocks with a market cap over $300 million.
Table 1. Top Gold Stocks By Return-On-Equity (ROE)
The Mining Report: The Toronto Stock Exchange (TSX) global index dropped 50% during the past year. Where is the silver-gold lining in this cloud?
Joe Mazumdar: Financing risk for the junior mining sector was highly elevated, to say the least, in 2013 and remains a source of uncertainty in 2014. To reduce the risk of financing a project, we seek projects that generate double-digit returns in the current pricing environment. We also look for management teams with the technical capacity to not only build and operate a mining project, but also to successfully execute the business plan, which includes permitting the project and attracting good personnel. We want to mitigate the technical and execution risks inherent in a project by selecting these management teams. As senior management cannot mitigate all risks such as geopolitical and financing risk, we seek projects in manageable jurisdictions where the management has appreciable relevant experience. Another key is that the underlying asset requires a manageable or "bite-sized" upfront capital requirement. Continue reading "Seven Gold and Uranium Juniors with Near-Term Growth You Can't Ignore"→