Junior Gold Miners Set to Outperform, According to Financial Web Site PennyStockDetectives.com
New York, NY (PRWEB) March 23, 2012
Sasha Cekerevac, co-editor of financial newsletter and web site Penny Stock Detectives, believes that, with the recent sell-off in gold, many investors are shying away from junior mining companies. As he says in his recent Penny Stock Detectives article, this could be a great opportunity for the long-term investor in gold junior mining companies to scoop up solid penny stocks for relatively cheap prices. Cekerevac argues that these stocks are now so cheap compared to the current price of gold that any stabilization in the price of gold will lead to these stocks trading higher.
Cekerevac points to the underlying trend in gold still being up. Junior mining companies that are exploring for and producing gold are looking out over the next five to 10 years and even further out. The gyrations in price allow for someone to enter gold junior mining companies when the short-term traders decide to jump out, in Cekerevac’s opinion. Scaling into positions is always a good idea for all penny stocks and not just gold junior mining companies, the editor insists.
“Claude Resources has several properties in Canada,” Cekerevac notes, “including a mine currently producing gold. I do like to invest in gold junior mining companies with several properties, hopefully one of which produces some gold, to help finance their exploration costs. As in all gold junior mining companies, there are always risks associated with holes being drilled and coming up empty, so an investor must conduct thorough research before investing.”
As reported in Cekerevac’s article, Claude Resources is estimating that it will produce 50,500 ounces of gold for the year 2012. Compared to 2011, this would be an increase of 13%. The problem with the stock appears to be a lack of faith in the company, according to Cekerevac, as it has missed estimates by analysts. Since expectations are low, this could prove to be a low “hurdle” for the company to jump over and, if it succeeds, this would result in the stock price moving up. The firm has also spent money on better equipment and appears to have things on track to really surprise to the upside, Cekerevac believes.
Claude Resources trades at a forward price-earnings ratio of 5.84, at a price-to-book level of just 1.0, and is growing revenue. With $ 35.0 million in cash, which ends up being $ 0.22 per share out of a share price of $ 1.11, this firm shows some solid fundamentals. If any part of the area under exploration hits higher levels of gold, then this current price will be seen as a relative bargain.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $ 10, and the stock market in general.
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The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at http://www.pennystockdetectives.com.
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