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Thursday November 03, 2011
Randgold: Breakout in GOLD?
by Leo Fasciocco, editor Ticker Tape Digest With annual revenues of $766 million, Randgold Resources Ltd. (GOLD) is an international gold mining and exploration firm. Technically, the stock would score a breakout on a move above 115. The company successfully developed the Morila deposit in Mali into one of the world's largest and highest-margin gold mines. It has a portfolio of prospective exploration projects across Africa in Mali, Cote d'Ivoire, Senegal, Burkina Faso, Ghana and Tanzania. Quarterly net will show a strong acceleration in growth. Net for the third quarter should climb 408% and then 467% in the fourth quarter. That is very impressive. In the fourth quarter, net is projected to leap to $1.64 a share from 29 cents a year ago. Overall, net for the year should soar 341% to $4.98 a share from $1.13 a year ago. Going out to 2012, the Street looks for a 44% gain in net to $7.18 a share from the anticipated $4.98 this year. The company will be benefiting from the opening of new mines. Institutional sponsorship is excellent. A key fund buyer recently was 4-star rated Templeton Global Smaller Cap Fund which purchased 2.1 million shares. Also, 5-star rated Fidelity Contrafund was a recent buyer of 201,800 shares. GOLD came public in 2002, trading around 3. The stock has since made a sensational move hitting a peak of 113 earlier this year. The stock is within range to make a new all-time high. If it can, it could draw in more buying from the new-high crowd due to its strong earnings outlook. We suggest a buy stop at 115 to catch the breakout. A protective stop can then be placed near 108. We are targeting GOLD for a move to 145 after a breakout. Learn more about this financial newsletter at Leo Fasciocco's Ticker Tape Digest. 
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