Sad to say, there was no winner in this week’s stock picking tournament on gold stocks. No one picked the winning gold stock – Nullarbor Holdings, which shot up by a spectacular 46.15% over the week. Nullarbor Holdings has tripled in price since January.
The good news is that the prize now jackpots to $1,000 for the next tournament. So get picking.
We’ve also made this week’s tournament an easy one. We’re focusing on the S&P/ASX 200 index, which comprises the 200 largest Australian stocks by market capitalisation. Simply tell us what level the index will hit by Friday week (3rd April). And don’t forget to briefly tell us your reason why.
The S&P/ASX 200 index closed yesterday at 3609.3.
Results of last week’s tournament
Although no one picked the winning gold stock, TheBull member’s favourite stock, Lihir Gold, shot up 11.55% for the week. Other stocks in the top 5 were – Oceana Gold (no change), Andean (up 6.49%), Santa Barbara (up 22.67%) and Mundo Minerals (5.56% higher).
Approximately 8 per cent of TheBull members picked the 2nd biggest mover for the week – St Barbara Limited. The stock surged 22.67 per cent last week. Here are some of the reasons why TheBull members like St Barbara
“Stock looks way oversold on RSI and is a large producer ramping up for even higher production. So good leverage to gold price which is shaping for an up move in coming week. Enough shares on issue for interest by instos. At target price of 43 cents it remains below previous resistance levels but if stock reaches these levels it could prove temporary. Better value is TRY which is a producer with no debt but looks less like a one week trade than SBM. ”
“I have chosen St Barbara Ltd. My research indicates this stock is an emerging Australian gold producer. It is a high cost producer which provides healthy upswing when price of gold spikes up violently, which I think is coming due to constant barrage of bad economic data. SBM has some of Australia’s best land bank and the Gwalia operation has very high grade Ore. Instos have been accumulating of late. I’m confident its got to be rerated with upcoming quarterly due soon. I own the stock so am biased.”
“St Barbara has recently completed a share issue, which has enable them to strengthen its balance sheet. SBM has a very good quality resource and its price has fallen considerably over the last week, and hence will rebound this week.”
“With lowering production costs and increased output SBM should be set to gain from any further strengthening in the gold price as investors look to equity with producers instead of buying gold outright.”
“SBM has been sold off heavily over the last week or so, in spite of its promising exploration results and relatively low operating costs. I think the price will bounce back this week as gold will be the
increasingly safe haven for investors.”
“Recent placement at 41c will strengthen its balance sheet as it aims to increase production as Gwalia Deeps comes online.”
More articles in this week’s newsletter