Recent movements in gold stock prices have thrown up changes in relative attractiveness

John Robertson

PortfolioDirect

Recent movements in gold stock prices have thrown up changes in relative attractiveness. Since Christmas Eve, the All Ordinaries gold price index has risen 15% with a median gain of 22% among the constituent stocks. The range of returns has been +7% to +52%. The PortfolioDirect pricing model suggests the four gold stocks from within its 27 stock coverage that now look the most attractive are: Red Mountain Mining, Blackham Resources, St Barbara and Mutiny Gold. The four stocks in the model looking most expensive are Kula Gold, Ramelius Resources, Phoenix Gold and Medusa Mining. The rankings only measure the extent to which companies may be priced above or below the sector average for the equivalent set of business attributes. No weight is given to company specific events which may be detracting from or contributing to market values in the near term. Mutiny Gold, for example, is subject to a takeover bid which effectively prevents existing shareholders realising value which will accrue to the acquiring company.


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...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter