Stocks & ETFunds

A popular valuation multiple within the resource industry is to take a company’s market cap and divide it by its gold equivalent ounces in the ground. This ratio gives an indication as to how pricey one company’s gold is in comparison to another's. As a reference, Barrick Gold (TSE:ABX) trades a 145 times its gold equivalent ounces in the ground, while Goldcorp (TSE:G) trades at 181x. That being said, the 5 low indebted gold stocks on our list today are trading below 55x.

The 4 mining stocks on our list today have exposure to silver. In addition, they have the best free cash flow figures compared to their competitors during the last 12 months.

In the face of low commodity prices, investors should give more preference to miners with lean cost structures. With that in mind, the 4 companies on our list today exhibit a low (below 5%) SG&A Expense as a % of Revenues ratio compared to the industry average of 30%.

Today's article identifies 5 junior gold stocks that are currently trading at a large discount to their peer group in terms of Price/Book Value and, based on that metric, could well represent good value.

From a trading perspective, gold appears to be a buy but, unfortunately…the price of the metal moves up or down suddenly, seemingly for no reason other than a reaction to breaking news…To minimize the risk of a downside surprise in gold…[we have identified]  four gold stocks that offer long-term investors a degree of safety, and the chance to participate in …

Always remember that there is no such thing as a free lunch when it comes to the search for yield. Higher yield investments equate to a higher degree to capital at risk.

I have created a model that will predict the price of gold for a year from now and the results suggest that there will not be much of an increase. As such, the best way to play this sector is to find companies with solid financials, a history of turning a profit margin even during tough times and outperform the gold index over a long period of time. These are the ones to consider.

Gold, silver and their mining stocks will perform much better than they did during the first part of the bull market. Here's why.

Precious metals thrive on volatility – the more uncertainty in the markets the more gains silver and gold will likely see - but how can investors make a rational decision regarding which specific stock to choose in this sector? One idea is to select those that have a positive net income. These stocks are generally safer as their costs have been normalized and are being covered by inflows of revenue and cash. The silver and gold stocks on our list today exhibit positive EPS figures, which we think will benefit its investors.

Tech stocks have been moving higher in recent weeks but, before considering buying tech penny stocks, investors should always consider valuation multiples to make sure they are not overpaying. This article presents a list of 5 such stocks with low EV/EBITDA multiples compared to its peers.