Randgold Resources (NASDAQ:GOLD) — For months, gold bullion prices have been running ahead of the gold mining stocks. But miners forged ahead in Q3 as higher earnings from increasingly better bullion prices improved their outlook.
With that rise in the price of gold bullion, Randgold is estimated to increase revenues by 108% in 2011, and looks for an increase of 38% in 2012. Earnings are expected to rebound to $6.74 in 2012 from $3.52 in 2011, and S&P has a ��four-star buy�� on GOLD with a price target of $140 within 12 months.
Technically the pullback from $120 and the successful consolidation at $110 offers buyers an excellent opportunity to purchase this quality mining stock at a discounted price.
The trading target for GOLD is $120 with a longer-term projected target of $150, as the recent decision by the Fed to keep interest rates low until at least late 2014 is a boost to most commodities, including gold.
With that rise in the price of gold bullion, Randgold is estimated to increase revenues by 108% in 2011, and looks for an increase of 38% in 2012. Earnings are expected to rebound to $6.74 in 2012 from $3.52 in 2011, and S&P has a ��four-star buy�� on GOLD with a price target of $140 within 12 months.
Technically the pullback from $120 and the successful consolidation at $110 offers buyers an excellent opportunity to purchase this quality mining stock at a discounted price.
The trading target for GOLD is $120 with a longer-term projected target of $150, as the recent decision by the Fed to keep interest rates low until at least late 2014 is a boost to most commodities, including gold.
