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Argonaut Gold Enters Oversold Territory
DividendChannel.com, Contributor
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Tuesday, shares of Argonaut Gold Inc (Toronto: AR) entered into oversold territory, hitting an RSI reading of 27.3, after changing hands as low as $7.92 per share. By comparison, the current RSI reading of the S&P/TSX Composite Index is 56.3. A bullish investor could look at AR’s 27.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AR shares:
Click here to find out which 9 other oversold Canadian stocks you need to know about, at DividendChannel.com »
Looking at the chart above, AR’s low point in its 52 week range is $6.44 per share, with $11.08 as the 52 week high point — that compares with a last trade of $8.01. Find out what 9 other oversold stocks you need to know about »
Bruce has been following Argonaut for quite some time now.
He has openly confirmed in a past interview that he and clients have booked some profits and still hold. Does not hesitate to recommend as a new holding. Not sure if there is digital clip on bnn to confirm - saw on tv.
Regardless, the growth story he liked a few years back has been achieved and growth for the upcoming years has been identified.
The long road to 500,000oz/yr could have some nice rewards along the way.
Here is one of Bruce’s early recommendations - This one would have been quite profitable 3.8 to 9/sh = 136%+/- on growth from 35,000oz to 108,000oz over 2 years.
2010-11-12
TOP PICK
Gold. Uniting with Pediment Gold (PEZ-T) to combine both their Mexican gold mines. Production will go from 35,000 ounces to 55,000, 75,000, 110,000 a year, a great growth pattern. Trading at almost half net asset value.
Price:
$3.810
Subject:
CANADIAN LARGE
Bias:
OPTIMISTIC
Owned:
Yes
This site has a number of different expert comments from over the last few years:
http://www.stockchase.com/company/view/3897/sort/opinion/page/1/direction/desc/max/15
Enjoy,
Jwits
Hi BCDOM,
I spoke to same guy as you at the show. It was not the same IR person that I’ve spoken to over the years. Reason for not attending was very appropriate.
Inquires I had regarding AR assets prior to PDG addition were handled great and when it came to the PDG asset questions, they were answered. The company has been following a plan and will work new assets into that plan but not rush the process. All projects will receive their needed attention and assessment, the PDG deal only closed 5 weeks ago. There will eventually be news. Even hercules might get some attention when the time is right.
As a AR holder prior, Magino is not the current story - it has its place and will possibly shine as the lead project when the time is right. A focus at El Castillo and La Colorada improves cash flow for future developments - Exploration at Magino is a pure expense.
Magino production 3-4 years is even fairly consistent with PDG projection around 2015 forward - still possibly a window of 2015/16 through Argonaut.
There were other companies at the show that would talk about production, cash flow, potential and even some amazing timelines. Achievable - Questionable.
I would rather see under promise and over deliver.
These guys like 10 baggers as much as all of us. Meridian went from $3 to $35. They started again, when they could with Argonaut at $3 and now around $10.
Successfully walking the path ahead could possibly exceed shareholder value creation already demonstrated in the past. It will just take time.
jwits
Resource Intelligence: How long were you watching the Magino project before you acquired Prodigy Gold?
Peter Doughtry: The Magino project was owned by a company called Echo Bay in the old days. I was a member of the Echo Bay team out of the Reno office, so I had been aware of the project for some time. We also have a board member, Peter Mordaunt, who is one of the original discoverers of the project when it was called the golden goose project. Not many people knew about the project then, but (Prodigy Gold CEO) Brian Maher and his team did a tremendous job advancing it, and that really caught not only our eye but also the eye of many other companies as well.
Quotes taken from the VRIC 2013 show guide - page 33
Hi Portee
Yes its definitely been quite on the board over the years and more lively now. It has mostly been a wait and let the story develop with this company.
Deliver results versus hyping potential has been the story since I’ve been involved. Two projects within the AR portfolio had hype and bust by former operators. Busts always leave a sour taste.
Updates - There is a constant flow of news even if announcements are a month apart.
Woefully under advertised and under promoted? I haven't found this to be a problem at all.
Why should current budget for advertising be changed? Share price has outperformed and the stock has a following. Not necessarily on Agora or in online forums it seems.
There are 9 analysts that cover Argonaut: http://argonautgold.com/investors/analyst-coverage/
Recommendations multiple times on BNN, Various milestones have been picked up in the news as well.
At Vancouver Resource Investment Conference - in the show guide there are 5 written articles. 3 involving companies. 2 for miners... 1 gold and 1 silver...
Argonaut gold story is featured in show guide... Great positioning in my opinion.
Just my thoughts.
Jwits
New presentation on website
http://argonautgold.com/admin/wp-content/uploads/2011/10/January-2013-Presentation1.pdf