Karora is in a in an uptrend driven by:
- Strong Trailing Twelve Month Fundamentals.
- Expectation that Fundamentals results will grow in both volume and grade quality in 2021.
- Expansive property resources to grow into for years forward.
- TTM P/E at Q4 2020 March dated price of $2.55 was under 6.
- Strong balance sheet with modest debt and $80 million in cash. Baseline monthly free cash flow is in the $4 million area. This will expand in 2021 – especially in Q3 & Q4 2021.
- Technical indicators are in full on bullish trend.
- Stock Price is above all major moving averages – Positive.
- MACD is in a buy signal for short term traders.
- CMF is in a stock accumulation mode – Positive.
Our longer-term price target between now and April 2022 (2021 earnings announcement) is into a range of $5.00 to $6.50.
There are multiple analysts who have price targets in this area, so I am not being original in this projection. The highest target I have seen is C$11.00 (US$8.25). That was on a YouTube alt-media program originated in Switzerland. Link to seven analyst’s price targets for KRRGF.
Buy and/or buy weakness with an upside buying limit of $3.75. Leave some room for profit growth in the stock price. LOTM is targeting US$6.00 as our twelve-month price goal.
LOTM considers Karora a “core” gold miner holding for multiple years forward in accounts related to LOTM. This comment is based on fundamental outlook and subject to price adjustment.
News Flow for Karora Linked here
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* An account related to LOTM holds a position in this security.
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