Of the universe of 6,774 stocks and ETFs you can screen on Finviz.com 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.
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