GoldMoney (TSX: XAU) is a steal here at $2.77 per share. This morning an investor who had a margin call on another stock was forced to liquidate their position. It has bounced big from the low of day but is still down big for the day when gold is about to enter positive territory!
Over the last twelve months, XAU generated positive EPS of $0.12 but this includes negative EPS of -$0.11 in the quarter ending March 31, 2020 which was the final quarter of their high regulatory expenses. When XAU reports its results this month for the quarter ending March 31, 2021, if they repeat last quarter's EPS of $0.05 it will cause XAU's trailing twelve month EPS to immediately explode from $0.12 today up to a level of $0.28!
In this scenario for XAU to merely maintain its current P/E ratio of 23 it will need to increase in price to $6.44 per share!
XAU deserves a much higher P/E than 23 because it has $29.486 million in cash, owns $41.56 million in gold, has $24.33 million in loans receivable with 100% chance of repayment, and owns 90 million Mene (TSXV: MENE) shares currently trading for $0.63 per share valuing them at $56.7 million. XAU's cash+gold+guaranteed loans receivable+stock in other companies adds up to $152.076 million or $2.02 per share! XAU is only receiving $0.75 per share in value for its main GoldMoney business with $2 BILLION in AUM plus its majority stake in Totenpass, which will launch this month allowing people to store digital data inside of a new one-of-a-kind indestructible solid gold drive!
We are 100% sure XAU will finish the month of May significantly higher than its current price!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 45,000 shares of XAU in the open market. He intends to sell these shares in the future for a profit and can sell them at any time without notice. He intends to sell these shares in the future for a profit and can sell them at any time without notice. This message is meant for informational and educational purposes only and does not provide investment advice.