The S&P 500 and NASDAQ are about to post the best quarterly performance in a decade, recovering from the sell-off at the start of the coronavirus crisis. A combination of stimulus, economic reopening, as well as positive trends in virus and hopes for a vaccine has driven the markets higher.
This week, there are many gold companies that are returning to their 52-week high including Alamos Gold Inc (AGI-T), Liberty Gold (LGD-T) and Goldmining Inc (GOLD-X). Jamieson Wellness (JWEL-T), profiting from the health trend, is trading at their 52-week high too. Shopify Inc. (SHOP-T) continues to rise higher.
Here’s this week’s 52-week high and low stocks on Stockchase:
52-Week High TSX Stocks
Here’s this week’s 52-week high stocks on Stockchase…
🛢 Basic Materials
He likes this. There are risks as a junior gold producer, if you do something wrong. Thus far, they have done a good job of operating. High quality people.
Liberty Gold (LGD-T) TSE
Likes management. Note that there is nothing immediately happening. It’s not something to chase, but just accumulate over the summer. Turkey is not bad at all, it is a democratic system. Their mining code is working. He thinks they have permitted 10 mines in 10 years. This company is technically very, very competent. Sitting on…
Adamera Minerals (ADZ-X) TSXV
Intelligently run diamond exploration company. Has yet to see that they have economic pipes. Also into nickel but he has not been following this.
Amex Exploration Inc. (AMX-X) TSXV
$45 million market cap. It has a gold project in western Quebec and hitting some high-grade at less than a meter, 600+grams/tonne. Their issue is continuity: will this grade continue? Now, it is an interesting play. Brent Cook: It's a narrow, high-grade vein but could be diluted which is a concern.
Golden Valley Mines (GZZ-X) TSXV
Company prospects for land, stakes it and then gets other companies to do the major work at their expense. Because they have so many properties, long-term they should get a discovery.
Integra Resources Corp (ITR-X) TSXV
Likes the managers, but concerned with the topography. A decent-sized gold project. A good speculation.
Pure Gold Mining Inc. (PGM-X) TSXV
A smart group of guys. They are putting a fair bit of work into proving their concept is right. They seem to be backing up their thesis. It is looking like it is working so far.
Strategic Metals (SMD-X) TSXV
He is tempted to buy this because it is selling at a discount to the cash and securities in the company, and you get the assets for free. The thing that holds him back is that this has undergone a strategic change. At one point they were a prospect generator, using their acumen and other…
Tembo Gold (TEM-X) TSXV
They are not so concerned about whether or not that they have the extension of the Bulyanhulu deposit which has 2 m veins. They've actually been encountering wider intercepts and have encountered a 23 m intercept rating 3 g per ton of gold. This is indicative that the extension might actually be richer. They are…
American Creek Resources (AMK-X) TSXV
Northwest BC is a seasonal play and the season is over--snowing now so there won't be news till June 2020. The entire play got ahead of itself. This will go lower before it goes higher--and it needs results to go higher.
Cypress Development Corp. (CYP-X) TSXV
In the Red Lake camp where there has been a lot of excitement because of what Gold Eagle (GEA-T) discovered. Have been pulling some very high-grade holes. He prefers Premier Gold (PG-T), Rubicon Minerals (RMX-T) and San Gold (SGR-X). A little early and speculative names are not working well in this market.
Dolly Varden Silver (DV-X) TSXV
Thinks the future of this company is in Heckla’s hands. There is a bit of a contest for the company. Sprott tried to become a shareholder and is a lender to the company. Thinks their time on earth is fairly short and that they will disappear.
Falco Resources (FPC-X) TSXV
A project that is effectively right underneath the Horne Mine Complex in Québec. Originally it was very low grade gold and copper, so in order for this to be economic, they have to be able to mine it using bulk mining methods, and keep the costs as low as possible. That would entail blockading. He…
Dundee Precious Metals Inc. (DPM-T) TSE
The operate gold and copper mines in Bulgaria and Namibia. Earnings up 80% YOY, and boast a 9.2% free cash flow yield. Cash flow to grow 74% in 2020 and 17% in 2021. Price-to-cash flow is 5.9x. ROE expected this year is 21%. (Analysts’ price target is $9.23)
Erdene Resource Development (ERD-T) TSE
This now has a project in Mongolia which has epithermal veins, which he loves. When you do find them and they carry great grades, it can grow really fast. This has a 50 g/meter width quite prominent with something like 16% which gets him excited. Still very early stage.
Marathon Gold Corp (MOZ-T) TSE
He does not own this, but has it as a speculative buy with a $2.50 target. He prefers to begin building a portfolio with royalty companies as they are the least risky, followed by the lowest cost producers and finally producers like this one. Their deposits appear attractive.
Sandstorm Gold Ltd. (SSL-T) TSE
The analysts are very slow to raising their earnings forecasts with the price of gold. The rebound in earnings in some of these companies will be really something. He likes the producers as opposed to the commodity. Producers give you leverage due to the fast rising earnings. He likes the Juniors as well as ABX-T.
Teranga Gold (TGZ-T) TSE
He's bullish gold which had a massive breakout in the summer. Gold based from 2013-early-2019. Gold has risen to $1,500 and has held that level. He targets $1,700. Dec. 5-Feb.26 is seasonality. TGZ is going higher. It would help gold if the US dollar rolled over.
Azimut Exploration Inc. (AZM-X) TSXV
Azimut (AZM-X) and Eastmain (ER-T) just announced some results if you are interested in the Eleonor, James Bay region.
Golden Goliath Resources Ltd (GNG-X) TSXV
Excellent exploration potential. Have had to spend a lot of time on the preliminary exploration and are now in a position to do more aggressive drilling. There could be some exciting news this year.
Minera Alamos Inc (MAI-X) TSXV
(Market Call Minute.) Deposit looks good, but it hasn't quite the size or the grade that it needs to move forward.
Tri Origin Exploration Limited (TOE-X) TSXV
(A Top Pick Feb 8/07. Up 8.3%.) Controls and Australian company, which has a massive polymetallic ore body. Also have a large virgin territory in Red Lake.
Alamos Gold Inc (AGI-T) TSE
He quant model suggests this offers the best growth opportunity for a gold producer. Free cash flow grew by 100% last year and should grow by over 40% in 2021. He sees 25% upside. Yield 0.78% (Analysts’ price target is $12.22)
First Mining Finance Corp (FF-T) TSE
(Market Call Minute.) Great execution with a $500 million market cap. Thinks it is ahead of itself. It is expensive.
Goldmining Inc (GOLD-X) TSXV
Well-run. When the gold price moves, this will too. Own it if you believe this will happen and are patient. Long-term.
Jaguar Mining Inc. (JAG-T) TSE
Roxgold Inc (ROXG-T) TSE
It is a high grade underground gold deposit in West Africa. The company has been generating free cash flow. It is a good management team and they are starting a new project also in West Africa. There is a security risk in these areas, however.
This is a name he has held for a long time. It is a rubber compounding business and they are getting good contracts as a result of the pandemic. It is a non-recurring revenue, so it may be a bit expensive here. He would not chase it as the momentum may not be sustainable. Definitely…
Ballard Power Systems (BLDP-T) TSE
Very interesting. Global leader in fuel cells. Niche business. Huge runup, and now correcting. Got way ahead of itself. Profitability potential is not that big. Good profit opportunity here if you own it. Wouldn't own it here.
Has been tempted to buy it for the valuation, but cannabis and bitcoin generated a lot of revenue for them, but that's since come off. Also, there's the UK headwind. It faces some rocky months ahead. Don't buy it now, but things will shake out in 12 months. Buy it at 0.75 book.
This is going to be the high-tech story in Canada. They developed a platform for real estate agents and have over 300,000 users now. The only problem with it was that it was not trading in the US, but it has now started trading there. Now a global operation. It’s illiquid.
All asset managers are being decimated. This trades at a premium. It no longer trades with the gold price. But he likes this sector, though prefers Sprott's peers like AGF. Now is not a bad time to enter this space.
Just looking at your local drug store, all the shelves have been stripped bare for their products. People are taking more supplements and he thinks that will continue. The stock is at 29 times PE, but technically it is bullish. He thinks analysts will continue to increase earnings outlooks to justify the costs.
They have been executing quite well. It has had a few bumps but been steady otherwise. It is high quality and can continue to grow through some of their projects.
It was beaten up for many years. With all the refinancing given rock-bottom interest rates, volume has picked up, so REAL benefit (providing software to the real estate, mortgage financing sector). The easy money has been made. If you buy this, hold for a long time.
They did tremendously well from a stock price perspective. They are extremely expensive. He prefers others.
52-Week Low TSX Stocks
Here’s this week’s 52-week lows stocks on Stockchase…
What to do with the Bonavista debt deal? https://globalnews.ca/news/7088006/bonavista-energy-calgary-company/ A sad ending to a good company with fine assets and managers. Problem was that their debt was maturing in November 2020 and debt holders refused to extend that debt two-three years. BNP also couldn't get debt relief from EDC or BDC. For shareholders, it's a…
Has had a huge run and is not sure he would be courageous enough to get onboard at this point. Management has done a remarkable job of building this. He would look for a little lower entry point.
It is pure extraction. There are probably 3 or 4 of them. They are a leader. There are not too many companies here that are profitable and these guys are one of them. They do toll extracting for clients as well as getting their own Cannabis and extracting from them. They make a great margin.
Use this list wisely to identify buying opportunities.
Happy trading !!!