Yahoo Finance Is It Too Late To Buy Harte Gold Corp (TSE:HRT)?
Harte Gold Corp (TSX:HRT), a metals and mining company based in Canada, saw significant share price volatility over the past couple of months on the TSX, rising to the highs of CA$0.47 and falling to the lows of CA$0.37. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Harte Gold’s current trading price of CA$0.4 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Harte Gold’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Harte Gold
What is Harte Gold worth?
Good news, investors! Harte Gold is still a bargain right now. My valuation model shows that the intrinsic value for the stock is CA$0.87, but it is currently trading at CA$0.40 on the share market, meaning that there is still an opportunity to buy now. However, given that Harte Gold’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What kind of returns can we expect from Harte Gold in the future?
What kind of returns can we expect from Harte Gold in the future? It’s one thing to get a stock at a low price, but the quality of the company is even more important, as its stock may be cheap or expensive for a reason. We can determine the quality of a stock many ways; one way is to look at how much return it generates relative to the money we’ve invested in the stock. Harte Gold is expected to return 4.74% of your investment in the next couple of years if you buy the stock today. This is a pretty average return, which doesn’t significantly add much to the case for owning the stock.
What this means for you:
Are you a shareholder? Although HRT is currently undervalued, the low future return begs the question – is there a better opportunity elsewhere? Think about whether you want to increase your portfolio exposure to HRT, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping an eye on HRT for a while, but hesitant on making the leap, I recommend you research further into the stock. Since it is currently undervalued, now is a great time to make a decision. But keep in mind the low future return, and whether the opportunity cost of investing in HRT versus another stock is worth it.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Harte Gold. You can find everything you need to know about Harte Gold in the latest infographic research report. If you are no longer interested in Harte Gold, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
