Hey Bruce. We're still bullish on the company moving forward. Keep in mind, it is our screener highlighting Alamos, and our screener often ranks undervalued stocks high.
Analysts figure Alamos will grow its top line by nearly 35% next year, and the company currently has a 2 year PEG ratio of 0.59, suggesting that the stock price currently isn't keeping up with its future growth estimates. With gold hitting all time highs, we could even see analysts bump estimates for most gold miners. The company is actually trading, on a forward price to earnings basis, well below its 5 year historical averages. The company is trading at 20.7 times forward earnings, while historically it's traded at nearly double that.
Keep in mind all these metrics are based off forward projections. Forward projections rely on estimates being met. However, Alamos is projecting some pretty steep production increases in 2021, north of 25%. If gold can stay at strong price levels until that time, Alamos will be generating a significant amount of cash.
It's not just Alamos that's taken a hit. Kirkland Lake, our Bull List pick, has also lost around 3.75% on the week.
We're still Bullish on the sector, Alamos and for that matter, Kirkland.
Of note, Mathieu owns Alamos, and I own Kirkland Lake.