SSRM: Interesting valuation and chart
Updated
SSR Mining has a very interesting setup here, both a quarterly and also a daily signal warrant a long entry here. If the quarterly signal pans out, initially we'd target $16.50 by Q4 2020, but eventually, this could make price trigger further quarterly confirmation for bulls, potentially pushing price to even higher levels, circa 28.31.
Free cash flow is an important metric in the mining business, and in the case of
SSRM, it is at a very healthy levels relative to the market cap. This allows them to have sufficient leeway to pay workers (and avoid the problems with the work force South African miners had recently, for instance), expand into new projects and maintain their currently exploited mines, among others.
Going back to the technicals at play, the current correction in the daily timeframe and reaction to quarterly support paves the way for a very high reward to risk long trade. There's a few different ways to decide on a stop loss distance and position sizing, but in general, for equities I try to give them enough room for the trade idea to pan out favorably, before being forced to bail on a trade or being stopped out prematurely.
Best of luck,
Ivan Labrie.
Free cash flow is an important metric in the mining business, and in the case of
SSRM, it is at a very healthy levels relative to the market cap. This allows them to have sufficient leeway to pay workers (and avoid the problems with the work force South African miners had recently, for instance), expand into new projects and maintain their currently exploited mines, among others.Going back to the technicals at play, the current correction in the daily timeframe and reaction to quarterly support paves the way for a very high reward to risk long trade. There's a few different ways to decide on a stop loss distance and position sizing, but in general, for equities I try to give them enough room for the trade idea to pan out favorably, before being forced to bail on a trade or being stopped out prematurely.
Best of luck,
Ivan Labrie.
Note
ir.ssrmining.com/investors/news/press-release-details/2017/SSR-Mining-Receives-EIA-Approval-for-the-Chinchillas-Project/default.aspxGolden Arrow and SSR Mining created a joint venture to develop a project in Argentina, the 'Chinchillas' silver mine. The project, will go live very soon, giving
SSRM a free cash flow boost once the impact is felt in their income statement. Keep in mind that revenues for SSRM come mainly from gold mining though, with silver contributing about 20% of the total, so the impact might not be too significant but certainly a positive for this stock.Note
Looks really good.Trade closed: target reached
Target hit, now trend is turning down long term...
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