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.
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.
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%
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.