Stock Tips of the Week — IMA and AMI

We have two stocks to bring to your atten­tion to this week. This rec­om­men­da­tion is based on Tony’s analy­sis using data from Sun­day, 31 Oct 2021. 

AMI

Our large cap stock this week is Aure­lia Met­als (ASX:AMI). Aure­lia is involved in pro­duc­tion and min­er­al explo­ration of gold, cop­per, lead and zinc. They are involved in three projects: Hera Project, Peak Gold Mine and Nymagee Project, all locat­ed in Cobar in cen­tral NSW.

Some of the rea­sons we like AMI this week include:

• Peter Bot­ten. the new chair­man, was Man­ag­ing Direc­tor of Oil Search Lim­it­ed (ASX:OSH) for over 25 years, retir­ing in Feb­ru­ary 2020. Over this time, he trans­formed the busi­ness into a major glob­al ener­gy com­pa­ny. He has exten­sive world­wide expe­ri­ence in the oil and gas indus­try, hold­ing var­i­ous senior tech­ni­cal, exec­u­tive and board posi­tions in a num­ber of list­ed and gov­ern­ment-owned bod­ies.
• AMI has a QAV score of 0.27 (based on a share price of 38c)
• Their Aver­age Dai­ly Trans­ac­tion vol­ume is ~$1.5 m.
• The con­sen­sus bro­ker val­u­a­tion is 75c, near­ly twice the cur­rent price.
• It’s a Star Stock on Stock Doc­tor, with strong and sta­ble finan­cial health. 
• Our Intrin­sic Val­ue #2 for AMI is $1.02, well above the cur­rent price.
• Their Price-to-Oper­at­ing Cash Flow is 3.41.
• The cur­rent share price is less than the Book Price + 30%.
• The cur­rent share price is just over the Net Equi­ty Per Share of 34c.
• The Growth/PE is 2.63
• They have a Record Low PE for the last six halves.

IMA

Our small cap stock this week is Image Resources NL (IMA), a min­er­al sands focused min­ing com­pa­ny oper­at­ing an open-cut mine and ore pro­cess­ing facil­i­ty at its 100%-owned, high-grade, zir­con-rich Boo­na­nar­ring Project, locat­ed 80km north of Perth in the infra­struc­ture rich North Perth Basin.

Some of the rea­sons we like IMA this week include:

• It has a QAV score of 0.32 (based on a share price of 20c)
• Aver­age Dai­ly Trans­ac­tion of $54,000
• Price-to-Oper­at­ing Cash Flow of 2.64
• It’s just become a three point trend line upturn
• Their Div­i­dend Yield is high­er than the cur­rent Bank Rate
• Finan­cial health is strong and sta­ble
• Direc­tor hold­ings around 15%

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.