Q: Hello team
what do you think of this company and would you consider it a buy? If you do consider it a buy where would it fit in your pecking order?
Also what is its valuation and fifth yield? Thank you!
what do you think of this company and would you consider it a buy? If you do consider it a buy where would it fit in your pecking order?
Also what is its valuation and fifth yield? Thank you!
5i Research Answer:
DNGat 9X earnings is quite cheap for the sector. With a 2.55% dividend that has shown some growth, a debt-free balance sheet ($27M cash) and good stock momentum, it looks good. There is only one analyst (sponsored by the company). DNG is a good little small cap gold company. Q1 Revenue of $67.7M beat estimates by 2%. DNG sees sales of $265M+ this year and it has a 10% share buyback in place. Gold sales rose 31% in April. Its small size adds risk but the fundamentals look fine here. We would consider it buyable for small cap gold investors and would rank it high amongst small caps and mid-point for the sector as a whole.