Dallas, Texas 12/26/2013 (FINANCIALSTRENDS) – Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) Outpaces Competition
Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) is an small cap gold mining firm with a market cap of $108 million. Unlike most of its gold mining peers which have shed market value, the stock of this Africa based mining operations firm has posted a 4.48 percent increase in its valuation during trading on December 24. While the market valuation jumped up, the trading volume was on well below the daily trading average on December 24. The firm which has managed to post sales of close to half a billion in the trailing 12 months has won a Zacks Rank #1 which indicates a Strong Buy.
Surges Past Competition
The surge forward of 4.48 percent in the value of the stock is well above the 1.05 percent posted by the basics material index on December 24. To put this surge ahead of Golden Star Resources Ltd. (USA) (NYSEMKT: GSS) in perspective, the rest of top five gold stock gained by an average of 2.5 percent during trading on that day.
While most of the gold stock which have strong fundamentals showed a relative healthy surge ahead during trading, the surge experienced by Golden Star Resources Ltd. (USA) (NYSEMKT: GSS) does come as a surprise given the relative weakness that has been buffeting the gold industry over the past year. The latest impediment for the pickup in demand for the stock came in the form of Fed deciding to implement taper moves to its federal stimulus package. Readers would note that the Fed Commission decided to reduce their monthly stimulus package by $10 billion last week, thus broadcasting their opinion that the general U.S market sentiments are on a upward trend. This means investors are starting to loosen up their purses and looking at investment options other than parking their investments in gold. This move by Fed coupled with buoyant economic sentiment is expected to further reduce the demand for gold. This will in turn lead to more pressure on the price of gold in the international market in the short term as per market gurus. Hence the across the board increase in valuation posted by the gold mining firms have taken the market watchers by surprise.
Stock Market Performance
Thanks to the close to 5 percent surge upwards in the value of the stock, it is trading at 7.6 percent above its prior 52 week low price. The stock is down 78 percent down from its 52 week high price point. In the past year it has lost 16 percent of its market cap and this depreciation in value over the past 6.67 percent in the past week and month. The stock has been price bound between $0.39 and $1.92 per share in the past one year. As it is still a small capped firm it has not started to payout any dividends till now. Investors in the stock would be hoping that the stock would do better in the next year unlike its loss making performance during 2013.
Company Operations
Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) is a small cap mining firm which has been concentrating on its mining operations in West Africa and South America. In West Africa the company has been active in Ghana.
