Ahrvo Daily Movers ⬆: B2Gold CorpWhat is B2Gold?
B2Gold Corp. operates as a gold producer with three operating mines in Mali, the Philippines, and Namibia. It operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. The company also has an 81% interest in the Kiaka Project in Burkina Faso. Furthermore, it has a portfolio of evaluation and exploration assets in Mali, Burkina Faso, Colombia, Namibia, and Finland. B2Gold Corp. was incorporated in 2006 and is headquartered in Vancouver, Canada.
Ahrvo Stock Scores
BTG has been a top 50 stock on Ahrvo for over six months. B2Gold is rated STRONG BUY and has an AhrvoScore (overall score) of 99. Over the last 3 months, B2Gold’s Momentum Score, Quality Score, Value Score, and Growth Score have remained stable at 99 (flat), 88 (flat), 89 (+1), and 100 (flat), respectively. Out of the 7,000+ companies we cover, BTG’s Momentum Score, Quality Score, Value Score, and Growth Score ranked in the top 1%, 12%, 11%, and 1 %. Relative to competitors, B2Gold ranks higher across all stock scores: AhrvoScore 99 vs. 58, Momentum Score 99 vs. 82, Value Score 88 vs. 43, Quality Score 88 vs. 37, and Growth Score 100 vs. 41.
Our Take
We are experiencing the largest devaluation of currencies in our lifetime. Over the last month, monetary and fiscal policy officials across the globe have turned on the spigot- substantially debasing their currencies in an effort to support coronavirus riddled economies. In the U.S., the Federal Reserve has injected $8 trillion of dollars into the economy, while the U.S. government has plowed an additional $3 trillion. In Europe, the Italian government is spending $900 billion, Germany is spending ~$800 billion, while Spain and France have allocated $200 billion and $121 billion, respectively. The European Central Bank is injecting nearly $1 trillion as well. In Asia, the Bank of Japan doubled its ETF purchases to $114 billion and the Japanese government is injecting $1 trillion into its economy (20% of GDP). All of these things are bullish for gold, which is fixed in supply and tends to perform well during economic uncertainty when government officials resort to devaluation. Bank of America analysts have placed a price target of $3000 on gold, 73% higher than the current price. As a miner of gold, BTG is poised to benefit from the rise in prices. The correlation (relationship) between BTG’s stock and gold is moderate at .61 but has been trending upwards since the beginning of April. After a pullback last month, BTG price action has accelerated, up 85%. Gold was up 16% over the same period. Given the run-up in price, BTG’s relative strength indicator of 68 is approaching overbought territory and may need to pullback before investors take a position in (buy) the stock. On a year-to-date basis, Gold is up 13%, while BTG is up 25%.
-Appo Agbamu, CFA
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