Yahoo Finance Why Golden Energy and Resources Limited (SGX:AUE) Could Be A Buy
Golden Energy and Resources Limited (SGX:AUE), an energy company based in Singapore, received a lot of attention from a substantial price movement on the SGX over the last few months, increasing to SGD0.42 at one point, and dropping to the lows of SGD0.35. 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 Golden Energy and Resources’s current trading price of SGD0.37 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 Golden Energy and Resources’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Golden Energy and Resources
Is Golden Energy and Resources still cheap?
Great news for investors – Golden Energy and Resources is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is SGD1.97, but it is currently trading at S$0.37 on the share market, meaning that there is still an opportunity to buy now. Golden Energy and Resources’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
Can we expect growth from Golden Energy and Resources?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 56.53% over the next year, the near-term future seems bright for Golden Energy and Resources. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since AUE is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on AUE for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy AUE. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Golden Energy and Resources. You can find everything you need to know about Golden Energy and Resources in the latest infographic research report. If you are no longer interested in Golden Energy and Resources, 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.
