GAU - Galiano Gold: Digging Into The Valuation After The Drop
- Galiano Gold has seen its share price slide by more than 50% from its Q3 2020 highs, with the stock suffering one of the worst corrections in the sector.
- This is partially due to expectations for flat to lower margins and lower earnings expected this year, with Galiano Gold guiding for higher costs and lower output.
- Fortunately, with Galiano 50% off its highs, the stock seems to have priced in this decline in earnings, with the stock trading at ~6x FY2021 annual EPS estimates.
- While I think there are several better ways to play the sector, I see the stock as a Speculative Buy below $1.04.
For further details see:
Galiano Gold: Digging Into The Valuation After The Drop