The Globe and Mail attempts to identify Canadian gold miners poised to
pop in its Wednesday, Sept. 3, edition. The Globe's Peter Ashton writes in the Number Cruncher column that if
bullion surges this September as
it has done in the past, it could
boost the share prices of Canadian
gold mining stocks.
Mr. Ashton looked for Canadian gold miners trading
significantly off their 52-week
highs. He began by setting a minimum
market capitalization
threshold of $1-billion to focus
on larger, more established companies
in the market. Next, he
looked for companies
trading at least 15 per cent off
their 52-week highs and therefore
having room to appreciate.
In order to select companies
with strong fundamentals
and outlooks, Mr. Ashton used
analyst consensus ratings to consider
only stocks rated either
"buy" or "strong buy."
Primero Mining is a gold
and silver producer with operations
in Canada and Mexico. The
stock is off more than 20 per cent
from its 52-week high. However,
on Aug. 26 the relative strength
index (RSI) of the stock dropped
below 30, signalling that the
stock may be oversold. Other gold stocks that shine for Mr. Ashton are First Majestic Silver and B2Gold.
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