Value Composition in Focus For Shore Gold Inc. (TSX:SGF) and Belo Sun Mining Corp (TSX:BSX)

Shore Gold Inc. (TSX:SGF) currently has a Value Composite score of 93.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Shore Gold Inc. (TSX:SGF) is 93.

Individual investors might be digging a little deeper into the playbook in order to create a winning plan for the remainder of the calendar year. The diligent investor typically has a portfolio that is diversified and ready to encounter any unforeseen market action. Even after creating the well-planned portfolio with expected returns, nobody can be absolutely sure that those returns will be seen. Setting realistic expectations can help the investor from becoming discouraged if the original plan runs into a bit of a snag. Of course every investor would like to enter the stock market and see sizeable profits right off the bat. This may only be wishful thinking for investors who aren’t ready to put in the time and energy to make sure the overall strategy stays on track and the portfolio stays properly managed.

Technicals at a Glance
In taking a look at some other notable technicals, Shore Gold Inc. (TSX:SGF)’s ROIC is -3.134132. The ROIC 5 year average is -13.519208 and the ROIC Quality ratio is -1.383130. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

There are many different tools to determine whether a company is profitable or not.  One of the most popular ratios is the “Return on Assets” (aka ROA).  This score indicates how profitable a company is relative to its total assets.  The Return on Assets for Shore Gold Inc. (TSX:SGF) is -1.005600.  This number is calculated by dividing net income after tax by the company’s total assets.  A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

Shareholder Yield
We also note that Shore Gold Inc. (TSX:SGF) has a Shareholder Yield of -0.071728 and a Shareholder Yield (Mebane Faber) of -0.30114. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

Shore Gold Inc. (TSX:SGF) has a current MF Rank of 14265. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

Price Index
We can now take aquick look at some historical stock price index data. Shore Gold Inc. (TSX:SGF) presently has a 10 month price index of 1.17500. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.11905, the 24 month is 1.38235, and the 36 month is 0.78333. Narrowing in a bit closer, the 5 month price index is 1.21762, the 3 month is 1.02174, and the 1 month is currently 0.82456.

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of Shore Gold Inc. (TSX:SGF) is 3.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

Taking a look at valuation rankings for Belo Sun Mining Corp (TSX:BSX), we see that the stock has a Value Composite score of 76. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 80.

In taking a look at some other notable technicals, Belo Sun Mining Corp (TSX:BSX)’s ROIC is -0.645367. The ROIC 5 year average is -2.686564 and the ROIC Quality ratio is -2.356126. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

Once the individual investor has done all the fundamental homework and found a few stocks that they think are poised to be future winners, they may want to figure out when to best get into the market. Many investors will turn towards technical analysis to accomplish this. Technical analysis can help identify entry and exit points by studying price trends and movements over time. Some technical indicators are very complex and others are very simple. One goal of focusing on technical indicators is to help make confusing price information easier to interpret and understand. Many investors will find signals that they like to follow, but focusing on just one indicator may not provide the full picture of what is really going on. Many investors will combine technical indicators to help round out the spectrum. Although technical analysis can be a very useful tool for the investor, it is important to remember that stock prices are inherently unpredictable. Even the most seasoned investors may have to adjust their charts occasionally if trades are not working out as planned.

The Q.i. Value of Belo Sun Mining Corp (TSX:BSX) is 78.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.

The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value.  Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.  The average FCF of a company is determined by looking at the cash generated by operations of the company.  The Free Cash Flow Yield 5 Year Average of Belo Sun Mining Corp (TSX:BSX) is -0.104574. 

Shareholder Yield
We also note that Belo Sun Mining Corp (TSX:BSX) has a Shareholder Yield of -0.209830 and a Shareholder Yield (Mebane Faber) of -0.00986. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

MF Rank
Belo Sun Mining Corp (TSX:BSX) has a current MF Rank of 13466. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

PI
We can now take aquick look at some historical stock price index data. Belo Sun Mining Corp (TSX:BSX) presently has a 10 month price index of 0.67391. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period.

A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.68132, the 24 month is 3.35135, and the 36 month is 2.63830. Narrowing in a bit closer, the 5 month price index is 0.70455, the 3 month is 1.08772, and the 1 month is currently 1.10714.

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