Richmont Mines, Inc. (RIC)

Stock Picks, Featured Profiles, Stock Updates, Stock Information, Intraday Stock Alerts, Daily Stock Analysis

RockingStocks.com Stock Picks

Your browser does not support inline frames or is currently configured not to display inline frames.

October 20, 2009

Rockin' Stock Pick: Richmont Mines, Inc. (RIC)

Stock Price: $3.19

Richmont Mines, Inc. has extensive experience in gold exploration, development and mining and has produced over 1,000,000 ounces of gold from its operations in Quebec, Ontario and Newfoundland since 1991. The company is looking to cost-effectively build its North American reserve base through a combination of organic growth, strategic acquisitions and partnerships.

RIC looks like a solid gold play with revenue increasing from $30.99 million in 2006 to $38.81 million in 2007 to $57.76 million in 2008. Net income for 2008 came in at $2.92 million.

We believe RIC is undervalued compared to their peers in the gold industry. RIC is trading at a market cap of only around $83.30 million.

Gold continues to rise and is very near reaching all-time highs again. A lot of gold stocks have already moved huge recently, but RIC has been trading between $2.50 and $3.50 over the last 2+ months.

RIC's balance sheet is strong with $21.38 million in cash and no long-term debt as of December 31, 2008. RIC has its 200-day moving average underneath at $3.08 and its 50-day moving average at $2.98. We believe RIC is a solid way to play the move in gold.

Disclosure: RockingStocks.com is owned by SpeculatingStocks.com, Inc. SpeculatingStocks.com, Inc. is not a registered investment adviser or broker/dealer. SpeculatingStocks.com, Inc. makes no recommendation that the purchase of securities of companies profiled in this Web site are suitable or advisable for any person or that an investment in such securities will be profitable. Generally, given the nature of the companies profiled and the possible lack of liquidity for their securities, investing in such securities is highly speculative and carries a high degree of risk. Never invest based solely on information from this Web site or our email alerts.

DISCLAIMER & RISK DISCLOSURE: RockingStocks.com and SpeculatingStocks.com, Inc. and our affiliates ("our companies") are not registered investment advisers or broker/dealers. Our companies make no commitment that the purchase of securities of companies profiled or otherwise mentioned in our websites are suitable or advisable for any person or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the possible lack of liquidity for their securities, investing in such securities is highly speculative and carries a high degree of risk. Never invest based solely on information from this Web site or our email alerts. Our RockingStocks.com Newsletter is our free alert email membership. We profile selected companies on our site. These companies compensate SpeculatingStocks.com, Inc. for profile coverage. This compensation can be found in the disclosure on the bottom of the page of profiles. This Disclaimer & Risk Disclosure is also at the bottom of profiles. Specific questions on membership or profiles can be obtained by writing RockingStocks.com at: staff@rockingstocks.com.