Starcore (SAM.TO) An UnParalleled Market Mis-Pricing

Of the universe of 6,774 stocks and ETFs you can screen on only 11 sport a dividend of over 10% and a P/E ratio of less than 5.  Pretty much all of them are involved in the oil and gas space as trusts.  So Starcore (SAM.TO) is a unique stock in that it sits there sporting a dividend close to 10% still and with such a low P/E ratio of less than 5.  The reason it’s so unnoticed and undervalued is it’s in the gold mining space, which everyone still loathes and wants to ignore, and it’s a small cap stock with one producing property.

But oh how things will change for this and other gold mining stocks whenever gold goes into a new bull phase.  Profits will expand, and with these companies going through a lean and mean bear market they will emerge with earnings growth that will literally ignite their share prices once this thing gets going.  Starcore, a gold miner willing to share a good portion of these profits with shareholders is going to start getting the valuation of a dividend paying stock, which is going to be a lot higher.

The views and opinions expressed are for informational purposes only, and should not be considered as investment advice. Please see the disclaimer.

Leave a Reply

Your email address will not be published. Required fields are marked *