Mid-Week Update: Mining a Market Leader for More Big Gains
Dear Trader,
We have a new active trade underway for Money Magnet Express.
Yesterday, we issued an alert with instructions to buy into one of the world’s leading gold mining companies, Barrick Gold Corporation (GOLD).
Barrick Gold is the Toronto, Canada-based mining company with productive mining assets throughout the US, Canada as well as in South America, Africa and Australia.
In addition to producing gold ore, the company also produces copper as well as other mineral assets that are often found in its general operations.
With gold prices sustained above the five-year average of $1,510.04 as well as copper prices that again are well above the five-year average of $313.29, Barrick Gold continues to gain in revenue from its mining and related operations as well as further gaining in its asset value of its mines and mineral reserves.
Revenue continues to climb over the trailing three years worth of quarterly filings by a compound annual growth rate (CAGR) of 12.74%.
And with mineral prices up over the past years, the current operating margin of the company is really good at over 40%.
This in turn aids the return on shareholders’ equity for the company, which is nicely climbing over the past three years.
With the mineral prices up as noted above, the underlying assets of the company are also gaining, with the book (intrinsic) value climbing over the trailing three years by over 17% on a CAGR basis.
So, the stock isn’t just rising in price, as the company is also gaining in its intrinsic or book value.
This combination of improving revenue with great margin as well as the asset valuation of the company is all working to push the shares higher in price.
And with our overall call for gold to remain at or climb higher from current prices, Barrick Gold is well positioned to continue to profit in the stock price.
The Trade to Make
Per the Trade Tracker, the trade was entered yesterday at $19.04, and new trades should only be bought under $19.44.
Here’s how the chart is setting up:
The daily time frame is at a low price near support.
The one hour time frame is showing signs of breaking above the short-term downtrend line.
Let’s look at buying GOLD under $19.44.
Per the Trade Alert, have a target price of $20.48, with a protective stop set at $18.04.
With the current price as of this writing at $19.38, we are already seeing the trade begin to work for us here at Money Magnet Express.
We’ll be sure to send you another alert when it’s time to make our exit.
Get The Full Rundown
To get the full rundown on this week’s markets and our latest discussions, be sure to check out today’s session recording on our website…
And for the latest on all of our stocks, click here.
Keep on trading,
Josh Martinez
Editor, Money Magnet Express