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Monday, 16 January 2012
Undervalued Gold Stocks Allow for Significant Buying Opportunities
Vancouver, B.C. - PC Gold Inc. (TSX:PKL) ended Monday's trading day at 42 cents, a healthy pullback from the 56 cent high seen on Friday after The Gold Report's buy recommendation on Wednesday at 36 cents. This pullback affords investors who missed out on the first lift in the stock price from their high-grade gold discovery a chance to buy in cheaply as PKL is extremely undervalued at its current market capitalization.
At 42 cents PKL has a $28M market cap for the 1.26 million ounce NI 43-101 inferred gold resource at their Pickle Crow mine, leading to an "in situ" value per ounce of only $22.23, far cheaper than the industry standard of $50 to $150 an ounce. This report is exclusive to the recent discovery, meaning their next NI 43-101 will show an increase to the 1.26 million ounces. The company has several holes still outstanding in the vicinity of the high-grade discovery, so in addition to fundamental value created from the cheap price per ounce of gold, there is also a significant speculative opportunity if the high-grade discovery continues to be widened or if a neighbouring discovery is found.
Argus Metals Corp (TSXV:AML) continued its rise from Friday's close of 9 cents, ending the day up 17% at 10.5 cents on heavy volume after The Gold Report's buy recommendation. Investors continue to speculate on the imminent release of AML's NI 43-101 report for the company's Yukon property which could show a significant upgrade to the current estimation of 117,000 ounces of gold. Despite the upward move in price today the company's market cap remains small relative to their potential at $6.1M.
Investors who took some profits from The Gold Report's PKL recommendation and put them into AML on Friday achieved excellent profits today despite the dip in PKL's price. Today's action affords followers the opportunity to load up on PKL and AML as both companies face an exciting few weeks for the rest of the winter while many other Canadian small cap gold explorers are stuck without news as they wait for the spring drilling season.
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