Quick Win by the Algorithm: McEwen Mining Inc. (MUX)

Quick Win by the Algorithm

McEwen Mining Inc. (MUX)

On March 14th, 2016, the I Know First algorithm gave a bullish signal of 342.98 for the ticker MUX with a predictability indicator of 0.57. In accordance with the algorithm’s prediction, MUX experienced outstanding growth of 65.10% in just 3 months.

quick win

The price of gold is still rising on a relatively weak dollar and fear over the state of the global economy. A disappointing jobs report in the U.S. greatly reduced the likelihood that the Fed will raise interest rates this summer. Plus, the possibility of the United Kingdom leaving the European Union has left many investors and analysts concerned about the impact that it could have on the economy. The price of gold reached $1278.22 per ounce last Friday, its highest level since May 18th.

Gold is a popular safe-haven investment during times of economic instability and the rising price of gold has resulted in the subsequent growth of many companies, including McEwen Mining Inc. TheStreet Ratings Team is currently rating MUX as a “hold” when considering the company’s “solid stock price performance, impressive record of earnings per share growth and compelling growth in net income” and struggling revenue growth.

Although McEwen is a smaller precious metals miner, it has other upsides as a company. The company’s cost per gold equivalent is around $900 per ounce, which gives it a comfortable margin between costs and the current price of gold. Additionally, the company had no reported debt at the end of the first quarter of this year and close to $45 million in liquid assets. McEwen has good fundamentals, but will likely continue to follow commodities prices whether they continue upward or begin to fall.