Thursday, December 1, 2011

New Gold currently sells at a discount to its peers, but is about to break higher: NGD

New Gold (AMEX:NGD) — This mid-cap gold company with assets in the Americas (mainly Canada) is expected to increase earnings in 2012 by 9% to 59 cents, a 29% growth projection, according to Zacks. NGD reported Q3 earnings of 9 cents per share, which met the consensus of nine analysts.

The acquisition of two venture exchange companies was announced in October, which is part of a long-term expansion plan.

Technically, in early August, the stock broke from a four-month consolidation at just over $11 supported by very high volume. But a general correction in gold has driven the stock to its bullish support line and quadruple-bottom where the stock is accumulating buyers.

NGD sells at a discount to its group and technically could break its high and drive to $14 within three months. Buy NGD at the market.

Trade of the Day – New Gold (AMEX:NGD)

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