SFR is our Stock of the Week

Our stock of the week is Sand­fire Resources. 

SFR is involved in the pro­duc­tion and sale of cop­per con­cen­trate, con­tain­ing gold and sil­ver by-prod­ucts.

Some of the rea­sons it is our stock of the week include: 

• Cop­per has just come back to being a com­mod­i­ty buy. 
  
• SFR have just under­tak­en a big over­seas acqui­si­tion, mak­ing it one of the biggest cop­per min­ers in the world. 
  
• Already has a cop­per mine in Aus­tralia, DeGrus­sa, which has a lim­it­ed mine life, so the share price has been low for a while. 
  
• Also has inter­ests in mines in USA, Spain and the Kala­hari.
  
• It’s dou­bling its cop­per min­ing just as the cop­per price is ris­ing.
  
• There are new finan­cials in Stock Doc­tor, but they don’t include the cap­i­tal rais­ing or new acqui­si­tion.
  
• High Aver­age Dai­ly Trans­ac­tion of $6.5M, mak­ing it suit­able for big and small investors. 
  
• A high yield of 5.28%, would suit peo­ple look­ing for income or frank­ing cred­its.
  
• Low Price:Operating Cash Flow of 2.44.
  
• Low PE around 6.7, which is a record low PE for last 6 halves.
  
• Share Price ($5.99) is below both the con­sen­sus tar­get the Stock Doc­tor Intrin­sic Val­ue, and our own Intrin­sic Val­ue #2 of $14.28
  
• It’s a Bor­der­line Star Stock in Stock Doc­tor. 
  
• Has strong, steady finan­cial health.
  
• Share price is also less than book + 30%
  
• Has con­sis­tent­ly increas­ing equi­ty.
  
• QAV score is 0.37

Please Note: 

Our rec­om­men­da­tions are based on the share price as of the date of the down­load. If the share price changes, this will affect the QAV score and its rank­ing on our buy list, so please take price changes into account before mak­ing any invest­ing deci­sions.

Please also note that this isn’t per­son­al finan­cial advice and you should con­sult a finan­cial plan­ner before mak­ing any invest­ment deci­sions.