MoneyTalks is Stockhead\u2019s regular recap of the ASX stocks, sectors and trends that fund managers and analysts are looking at right now.<\/p>\n
Today we hear from Fairmont Equities managing director Michael Gable.<\/strong><\/em><\/p>\n Michael says his team have been bullish on resources for a while now.<\/p>\n \u201cIf you follow our work over at Fairmont, you\u2019d know well we\u2019ve been particularly bullish on gold, copper, and uranium.\u201d<\/p>\n He says, while the number of pure play copper stocks on the Australian market is \u201cfairly limited.\u201d<\/p>\n \u201cThere are, nevertheless, plenty of gold stocks to choose from. And when it comes to uranium, I believe that the upside from here is immense.\u201d<\/p>\n \u201cSo, I propose, we take a look at what is happening with gold and uranium, and I\u2019ll describe a few local stocks which we believe,\u00a0 should do extremely well from here.\u201d<\/p>\n \u00a0<\/p>\n Last year gold was getting bought up heavily by central banks around the world with China being the major player, Michael tells Stockhead<\/em>.<\/p>\n \u201cAt the time, it was sitting under a major resistance level which was just under US$2100\/ounce. It was on the cusp of a major breakout, and it was only a matter of time until it got moving. We finally got that breakout at the start of March and it has been on a great run since then. If inflation stays high, gold will be bought.<\/p>\n \u201cIf interest rates start to head lower, gold will be bought.<\/p>\n \u201cCentral banks are still buying gold so there are plenty of reasons to stay long. Even from a technical point of view, this recent breakout, when viewed on a longer-term chart, is only the start of the move.<\/p>\n \u201cWhen it comes to stocks, Michael says he\u2019s have a found a couple of smaller producers which are still in either the base forming stage, or are consolidating back near their lows.<\/p>\n \u201cUpside breaks from a large bases and sideways consolidations can lead to big moves.\u201d<\/p>\n \u00a0<\/p>\n \u201cRSG is an African focused producer,\u201d Michael tells Stockhead<\/em>. \u201cIts market cap is still just under $1bn but that looks set to rapidly increase from here.\u201d<\/p>\n \u201cThe company is unhedged and can capture the future upside in the gold price.\u201d<\/p>\n Via Fairmont<\/em><\/p>\n \u201cThe average analyst target is over 70c, and although I don\u2019t usually agree with analysts, I can see that being easily achievable based on the share price chart.\u201d<\/p>\n In March 2023, RSG shares had a solid run on very high volumes.<\/p>\n \u201cSince then, they \u2018ve consolidated sideways on lower volumes. This is a bullish sign and usually means that a stock is getting ready to make the next big move.<\/p>\n \u201cRecent trading in the shares are indicating to me that it is nearly ready for that move. I can see resistance here at 50c\u2026 A break above that would have me targeting levels near 80c.<\/p>\n \u201cA more bullish case, using some Elliott Wave theory could see numbers closer to $1.20 by year end.\u201d<\/p>\n \u00a0<\/p>\n \u201cRRL looks very exciting to me because it has been forming a large base for over two years now. Remember, the bigger the sideways move, the bigger the breakout,\u201d Mike says.<\/p>\n\n \u201cThis Aussie gold producer has recently approved the development of two more projects.\u00a0 It is also unhedged and therefore can capture the future upside in gold.<\/p>\n \u201cI can see RRL moving up towards the top of its base, which is near $2.50. A break above this base would give a technical target near $3.50 as a minimum.\u201d<\/p>\n \u00a0<\/p>\n Uranium is the next big trade in Mike\u2019s opinion.<\/p>\n \u201cWe had lithium a couple of years ago, and Buy Now Pay Later before that. But this one could eclipse both of them.<\/p>\n \u201cUranium is in short supply due to a decade of underinvestment, and we now have demand picking up substantially.<\/p>\n \u201cThe sector will remain in deficit for years to come and so will the supply response. Until then, uranium prices will head higher and share prices will follow.<\/p>\n \u201cUranium got quite a bit of attention earlier this year when the spot price spiked higher, but it has fallen off many people\u2019s radar. Despite the US recently passing legislation in the senate to phase out Russian supplies, it is still not grabbing the headlines.\u201d<\/p>\n Mike says this is short-memory stuff is exactly what we want to see, because share prices are climbing higher under the radar.<\/p>\n \u201cLike the previous big trades before it, stock prices front run what will happen in the future, then it starts to get people\u2019s attention.<\/p>\n \u201cBig investors pile in, analysts start upgrading numbers, retail investors get hold of it, the story hits the front pages, and you get a FOMO rally taking share prices probably higher than where they need to be.<\/p>\n \u201cWe are yet to see this play out, which is why I am very excited to see how the rest of the year pans out.\u201d<\/p>\n \u00a0<\/p>\n PDN is the top of Michael\u2019s list in playing the uranium trade.<\/p>\n \u201cThey are in production again, have a track record, and get the most coverage from the big analysts.\u201d<\/p>\n He says that earlier this year spot prices rallied and PDN stock was pushing beyond $10 (adjusted for the recent share consolidation).<\/p>\n \u201cIt then cooled off and investors were asking me if the move was over.<\/p>\n \u201cWell, I just pulled out my monthly chart of PDN \u2013 which, by the way, I carry around with me in my back pocket. I took it out, patted it gently and said \u2013\u00a0 The answer is \u2018no, this thing has only just started\u2019.<\/p>\n \u201cIf a stock like RRL looks bullish for spending two years forming a base, then have a look at PDN. It has built a base for over 10 years. The recent 50%+ rally since the start of the year is a mere pimple on the chart.\u201d<\/p>\n\n Michael says, if this breakout is the real deal \u2013 and he thinks it is\u2026<\/p>\n \u201cThen we have quite a bit more upside from here over.<\/p>\n \u201cI am looking at PDN to move multiple levels higher from where we are right now.\u201d<\/p>\n \u00a0<\/p>\n BMN is not producing yet Mike says, but has one of the largest undeveloped uranium mines in the world around the corner from Paladin\u2019s mine in Namibia.<\/p>\n \u201cUsually when a commodity price takes off, it\u2019s the smaller quality stocks that have more leverage to the upside.\u201d<\/p>\n BMN is in this camp for Michael.<\/p>\n\n \u201cThe overall chart looks similar to PDN which is why I like it, but it has greater upside potential over time.<\/p>\n \u201cLike PDN, this breakout has only just started.\u201d<\/p>\n \u00a0<\/p>\n The views, information, or opinions expressed in the interviews in this article are solely those of the interviewee and do not represent the views of Stockhead.<\/em><\/p>\n Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.<\/em><\/p>\n <\/span><\/p>\n The post MoneyTalks: The hour has come for Regis, Resolute, Paladin and Bannerman<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"Gable\u2019s Gold<\/h2>\n
Resolute Mining (ASX:RSG)<\/strong><\/a><\/h2>\n
Regis Resources (ASX:RRL)<\/strong><\/a><\/h2>\n
You and Uranium<\/h2>\n
Paladin Energy (ASX:PDN)<\/strong><\/a><\/h2>\n
Bannerman Energy (ASX:BMN)<\/strong><\/a><\/h2>\n