In today’s briefing:
- Awaiting CPI Thursday; Expect 4100-4165 SPX to Cap Upside; Buy Ideas Within Gold Miners, Insurance
- Harmony Gold: Unconvincing Margins And Overestimated Price Support
- Matador Resources: Downgraded To Sell; 50% Downside Possible
Awaiting CPI Thursday; Expect 4100-4165 SPX to Cap Upside; Buy Ideas Within Gold Miners, Insurance
- We currently see the market indexes as consolidating within broad horizontal trading ranges, and we expect these ranges to continue for months, and quite possibly for the entirety of 2023.
- We see the top-end of the range at 4100-4165 on the S&P 500, while the bottom-end is at the 2022 lows (3490).
- With yesterday’s break above 3910 it tells us a tradable rally has begun, with 4100-4165 our target
Harmony Gold: Unconvincing Margins And Overestimated Price Support
- Harmony Gold’s profitability ratios are severely compressed at both their current levels and their cyclical peaks.
- Apart from lucrative dump mining sites, the company generally operates a high-cost model.
- The security’s total return prospects are gloomy as Harmony’s stock lacks carry returns and its price returns remain severely speculative.
Matador Resources: Downgraded To Sell; 50% Downside Possible
- Matador Resources’ exponential growth trajectory could be crushed by less supportive oil and gas prices, which might compress the firm’s earnings per share.
- However, acquisitions and expansion projects will be challenging during a period embodied by unfavorable capital structures and recession risk.
- It’s been ten months since we covered Matador Resources’ (NYSE:MTDR) stock.
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