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
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.