Sometimes, identifying the fast-money developments is as simple as following the trends, asserts Mark Skousen and Jim Woods, co-editors of Fast Money Alert.
A case in point is the fast-money wave of buying in gold and precious metals mining stocks. This is a development that we’ve identified thanks to one of the trend-following plans in Jim Woods' Successful Investing advisory service.
In that service, he tracks a compilation of gold and precious metals mining companies and measures their collective price movement over the past 25 weeks.
When the price trend in his proprietary index jumps above its 25-week moving average, he issues a new “Buy” in gold and precious metals mining exchange-traded funds — which he just recently did.
Today, we’ve taken that “Buy” signal in gold and precious metals mining stocks as our trigger to invest in one of the highest-rated gold and precious metals mining companies in the market today.
Sibanye Stillwater Limited (SBSW) — a South Africa-based producer of precious metals that develops and extracts mineral properties.
Its diverse portfolio includes platinum metal operations in the United States and South Africa, gold operations and projects in South Africa and copper, gold and platinum metal exploration properties in North and South America.
Sibanye is the largest primary producer of platinum, the second-largest primary producer of palladium and ranks third among global gold producers on a gold-equivalent basis.
What we like about SBSW is that it has been at the top of the list of mining stocks in terms of share price performance over the past year. In fact, its 190% spike over the past 52 weeks has vaulted the stock into the top 10% of all public companies for share price performance over the past year.
The company is also an earnings powerhouse, with EPS surging in its most recent quarter and year-over-year earnings per share (EPS) estimates for growth of more than 60% in fiscal 2021.
Technically speaking, SBSW has formed a very bullish cup-with-handle pattern over the past eight weeks. Moreover, today’s slight giveback means that there is a chance for us to get in on SBSW before it stages its next big move higher.
For these reasons, now is the time to jump on SBSW wave. So, let’s buy Sibanye Stillwater Limited at market, with a protective stop at $15.90. For those willing to make a bigger bet, we recommend the SBSW July $22.50 call options (SBSW210716C00022500), which last traded for $1.10 and that expire on July 16.