I've looked at CY2016 Gold stock gains vs CY2017 Gold stock gains. Back in 2016 the market was valuing Gold Stocks based on P/FCF and P/CF.
Evidence in 2017 is the market is looking for the same thing. P/FCF and P/CF for 2017 is important as well as the earnings outlook for future years.
I am now keen on SLR with P/CF = 3.74 as well as a great forcast for Earnings in 2018/19. If your a believer in the Golden Cross currently happening in HUI leading to big gains, then SLR has to be a consideration. Read more about the Golden Cross here: http://www.zealllc.com/2017/mjrgsbo.htm
So many expansion factors to impact SLR stock price in the next few years:
- Gold price to increase
- HUI:Gold Price ratio to expand
- Currencies to weaken
- Gold stocks to gain favor in the market
- Earnings to increase, even before taking account of the above
- Stock EV/EBIDA is currenty cheap as.
- Rotation to come within Gold stocks from the big boys to the Juniors
I sold SLR at 57c, moved the money into SAR and have done very well. Time to recycle that back into SLR, ready for the next leg up.
DYOR, GLTAH
SLR Price at posting:
45.0¢ Sentiment: Buy Disclosure: Not Held
