ALGO Update: Stay Long Northern Star Resources

Posted on | by Todd

Our ALGO engine triggered a buy signal on NST on May 24th at $6.16.

At the time, we referred to the company’s recent production forecast of 600,000 ounces of Gold for 2018 as a net positive.

However, a recent research note from UBS has upgraded their production to 690,000 ounces and set a 12-month target on the stock at $7.50.

Considering the recent weakness in Spot Gold, we expect NST to continue to trade higher as the Spot market improves. Northern Star

 

Newcrest Gets A Lift From Citi Price Upgrade

Posted on | by Todd

Shares of NCM are over 1.5% higher to $21.40 in early trade after a Citi Research report upgraded the stock to “BUY” and raised their 12-month target price to $25.80 per share.

The report focused on the share price relative to the replacement costs of the assets, which suggests that NCM may end up as a takeover target for a larger mining company looking for Australian assets.

Considering that the performance of Spot Gold has been tepid over the last month, local gold mining shares have been well bid.

At current levels, we prefer adding to long positions in NCM and NST.

Newcrest

Northern Star

ALGO Buy Signal For Northern Star Resources

Posted on | by Todd | Leave a Comment on ALGO Buy Signal For Northern Star Resources

Our ALGO engine triggered a buy signal for NST into yesterday’s ASX close at $6.18.

This “higher low”pattern is referenced to the low of $5.60 posted on February 8th.

Their most recent quarterly report showed that cost of production was stable at $1075 per ounce, which still reflects a healthy operating margin.

Further, NST expects to lift annual production to 600,000 ounces by the end of the year. The company also reported $439 million in cash and no bank debt.

The daily charts show solid support at $6.00 with a medium-term upside target of $7.10.

Northern Star Resources