EQX is a hold based on the quant system at Seeking Alpha. LOTM believes EQX quant rating are set up perfectly for a one-year to three-year triple in EQX’s price. Here is my logic.
Note the Valuation, Growth and Profitability rankings below – they all look pretty good to me. The Revisions are bad (down) because the short term problems at Greenstone that are likely fixed or will be soon. The Momentum Ranking is a very big deal at Seeking alpha. I don’t know its weighting in the five sectors but I would not be surprised to learn that Momentum is weighted higher than the othere four ranking in the over all picture. As a value company buyer first and also seeking long-term capital gains I love this quant reading. If I bought today and sold a year plus from now I would expect at least a double in the share price. The stats metrics from Finviz are below the Quant ranking that follow immeditally below.
Check out the trailing P/E ratio of 12.82 and the fdw P/E ratio of 5.25 in the finviz stats box below. Also check out column 3 past and forward EPS & Sales rates. I believe EQX is set up for years of above average growth and profitability. In a past interview Ross Beaty Chairmen, said that once Greenstone and Newfoundland are at full capacity, free cash flows should be in the C$100 million per month range. Can we really afford to pass on this idea? Selling 30% on the first double is one way to refresh funds for ne Ideas and derisk the position. I will not use stop losses on this one. Unless something changes at the company or macro level it seems best to DCA into the company. Just an opinion.
There are abundent rumors of the Trump administration using gold or bitcoin or both to back up new longer term treasury offerings as a way to lower the interest rate and extend maturities.
Judy Shelton’s Plan to Revive The Dollar With Gold
Bitbonds & Bitcoin Reserve: Genius Plan or Financial Folly?!
If true, that would drive gold and bitcpoin higher. Lots orf room for positive surprises with in the mining industry and crypto industry.
Analyst posting from September 24 to present:
Link to stats and analyst sources
A very important part of profiling for stocks that can double or more, is to “see” future potential before the “market” and “media” promote the actual numbers. This is the same as buying wholesale and waiting for the retail buyer to appear. While brokers say, “Buy -you can make 20% on your money.” 20% is not enough for me. Having been in the brokerage business for 25 years, I understand the game. To get doubles and triples or more you have to buy wholesale and sell retail.
Most of the time, position management is as or more important than what you buy. In buying wholesale/selling retail, you might be too early or the macro environment migh shift to a new story line. It is just part of the game. If you don’t want to or don’t have the time or desire to position manmage, buy a mutual fund or ETF.
It is much harder to get doubles or triples in a mutual fund or ETF than in individual stocks. Having said this there are many ways to position manage a stock. Some ways are more time intensive than others but a topic for a different time.
Dollar cost averaging is an excellent risk management tool when working a position for getting price doules and more over time.
Three-year chart
Long-term trend in EQX sure seems to be higher. The next year with strong earnings and cash flows could accelerate the rising trend.
Could something negative happen so my Buy, Buy, Buy message does not work? Certainly. This is a game of probabilities and this is just my opinion. In the market if you are right 60% of the time and let your winners run, you can make a lot of money. That means if I am right 60% of the time, I am wrong 40% of the time. In baseball, a superstar is a batter who gets a hit 40% of the time. It is easier to be better than 40% in the market.
In the market, as in life, it is Know Thy Self and Know Your Company. Your odds of success increase as these two points of knowledge and confidence grows.
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
To Unsubscribe please select “return” and type Unsubscribe in the subject line.
