Randgold Resources Ltd. (NASDAQ:GOLD) — For months, gold bullion has been running ahead of gold mining stocks. But that trend appears to be correcting as major mining stocks came to life in the past week.
Randgold mines in West andCentral Africa. With the rise in the price of gold bullion, the company is expected to increase sales by 112% in 2011 versus an 8.9% gain in 2010. The rise in the price of gold has provided this miner with a strong cash flow and enabled it to complete new mining operations and increase its exploration efforts. S&P has a “four-star buy” on GOLD with a price target of $140 within 12 months.
Technically the recent break from a pennant gives a trading target of $120-plus, but longer term, it signals that another major bull market move is in order for this stock.
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