Youth employment is a leading indicator for initial jobless claims because young people are the first to get fired.
woensdag 24 april 2019
Stock Screener: Gran Colombia Gold
If I don't have any ideas anymore what to buy, I use the stock screener.
Gran Colombia Gold is a high grade gold miner with positive free cash flow of $40 million/annum. Yet it trades at $160 million market capitalization. I believe this stock is an easy double a few years from now. It doesn't have a dividend, but it has huge earnings.
What you want to do is filter on 4 attributes: market cap, P/E, dividend yield and percentage change.
1) Market Cap: do not choose small companies as they are mostly fraudulent or don't have sustainable earnings. Don't choose big companies because these are not volatile enough to get fast profits from. I'd filter between 200 million and 4 billion.
2) P/E ratio: choose the companies with the lowest P/E ratio, these companies are dirt cheap while still having earnings. Cheap is below P/E of 5. But do not choose below P/E of 2 because those are mostly companies that are going bankrupt or have bad growth.
3) Dividend yield: always choose companies that have dividends, because these companies have real earnings and can prove they have sustainable earnings to reward investors. The higher the better of course, but don't push it above 7% as those companies probably don't have the money to pay out dividends on a regular basis. I'd go for companies with dividends between 3% and 7%.
4) Volatility: don't choose companies that are so volatile. Maximum year over year change should be between the 20% range.
Gran Colombia Gold is a high grade gold miner with positive free cash flow of $40 million/annum. Yet it trades at $160 million market capitalization. I believe this stock is an easy double a few years from now. It doesn't have a dividend, but it has huge earnings.
What you want to do is filter on 4 attributes: market cap, P/E, dividend yield and percentage change.
1) Market Cap: do not choose small companies as they are mostly fraudulent or don't have sustainable earnings. Don't choose big companies because these are not volatile enough to get fast profits from. I'd filter between 200 million and 4 billion.
2) P/E ratio: choose the companies with the lowest P/E ratio, these companies are dirt cheap while still having earnings. Cheap is below P/E of 5. But do not choose below P/E of 2 because those are mostly companies that are going bankrupt or have bad growth.
3) Dividend yield: always choose companies that have dividends, because these companies have real earnings and can prove they have sustainable earnings to reward investors. The higher the better of course, but don't push it above 7% as those companies probably don't have the money to pay out dividends on a regular basis. I'd go for companies with dividends between 3% and 7%.
4) Volatility: don't choose companies that are so volatile. Maximum year over year change should be between the 20% range.
zondag 14 april 2019
China is buying gold
I'm getting more and more bullish on gold, because there is evidence that China is buying. We see this both in the Chinese central bank buying of gold, the latest SGE withdrawal numbers from March (55 tonnes per week, which is very high) and also the Shanghai premium numbers.
Shanghai silver premiums are going up.
Shanghai gold premiums are going up.
Shanghai silver premiums are going up.
Shanghai gold premiums are going up.