Randgold Resources Limited: Nice Bounce!

Randgold Resources Limited has almost doubled since November 2008 coming back from a low of $22.50 to close yesterday at $42.10. Investing in this sector of the market is certainly volatile and not for the faint hearted.

The chart is setting up fairly well for continued progress and we were pleased to see it bounce off its 50dma, with the technical indicators suggesting further progress. However the P/E Ratio stands at 68.78, which looks high when compared with Kinross at 32.85 and Yamana at 15.72, although Agnico-Eagle is also up there at 61.98. We are not increasing our exposure to this stock at the moment but if gold goes on a run then Randgold is sure to join in the fun. Having exposure both sides of the pond also helps in that it is available to a wider audience of investors.

Randgold has a market capitalisation of $3.22 billion, a P/E ratio of 68.78 with 76.50 million shares outstanding. The average volume of shares traded is 1.07 million per day. This stock has a 52 week high of $56.28 and a 52 week low of $22.28.

Randgold Resources Limited trades on the NASDAQ under the symbol of GOLD and on the London Stock Exchange under the symbol of RRS.

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