Northern Star Resources has a Rating 2 (on a 1-5 scale) from PortfolioDirect

John Robertson

PortfolioDirect

Northern Star Resources has a Rating 2 (on a 1-5 scale) from PortfolioDirect. It reported quarterly results today. It is being positioned as a scaled up producer to attract North American investors. How many times have I heard American investors say we would love to invest if only you were bigger? More often than not this is simply a polite way of saying no. In reality, Northern Star is overpriced and lacking the necessary positive value momentum to underpin future share price rises. Will size overcome these shortcomings? Not indefinitely. The onus should be on companies to prove they can add value by beating the bullion benchmark. Not many existing producers with aging mines can and Northern Star has just gone out and bought all the old mines it can lay its hands on.


John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...

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