Franco-Nevada CorpBuy at 200 week EMA
**forgot to post this. Support held succesfully. However if retest would be a good deal.
3FO trade ideas
FNV fundamental trade Buying long hereBuy is pretty straight forward if you see the charts. Buying at a low price to sales ratio sell it at a higher P/s and P/e multiple. Return on Assets is rising.
FNV LongDemand Zone below Sideway Consolidation
Breakaway Gap
trendline break
Demand confirmation
PlanA:
Entry 131
Stop 120
target 165
PlanB at next demand zone:
Entry 107
Stop 101
target 152
I am not a PRO trader. I need few months to practice trading strategies.
If you like this idea, please use SIM/Demo account to try it, until my trading plans get high winning rate.
LONG FNVExpecting bounce from extremely oversold weekly and daily levels. If stop breached, be prepared to catch new daily reversal on lower levels with a tight stop.
Why Precious metals streaming and royalty companies make senseI am always looking out for opportunities to diversify my small but growing portfolio. I came across streaming and royalty companies during the course of my research into ways of investing in precious metals and was blown away by the business model.
There is a plethora of information on the web on streaming and royalty companies business models. I will attempt to summarise the most important ones here:
- Under a streaming agreement, a streaming company pays upfront for the right to acquire future physical deliveries of metals (at predefined percentage).
- A royalty company on the other hand provide funds for mines in exchange for future profits (by receiving a fixed percentage of the revenue generated by the mine)
- Streaming and royalty companies do no have the same underlying risks with physical mine operations as do the mining companies, and consequently they have a very small management team/staff and huge profit potentials
- Royalty companies have traditionally reported very high revenue per employee, which dwarfs all mining companies combined including tech giants (comparing to others outside the mining industry). I recommend reading Kitco's analysis titled "This is the Rolls-Royce of the precious metals business" for charts that perfectly illustrates this.
The list below contains the biggest streaming and mining companies:
- Franco-Nevada Corp (FNV)
- Wheaton Precious Metals Corp (WPM)
- Royal Gold Inc (RGLD)
- Osisko Gold Royalties (OR)
- Sandstorm Gold (SAND)
- Metalla Royalty and Streaming (MTA)
- ELY Gold Royalties (ELYGF)
- Abitibi Royalties
- EMX Royalty Corporation (EMX)
- Maverix Metals
- Sailfish Royalty Corp
- Nomad Royalty Co Ltd
From the list above, I have selected the following as my favourites:
- Franco-Nevada Corp (FNV)
- Wheaton Precious Metals Corp (WPM)
- Royal Gold (RGLD)
- Osisko Gold Royalties (OR)
- Sandstorm Gold (SAND).
Unfortunately, my broker platform doesn't list Osisko Gold Royalties so will only invest in the 4 others to diversify my portfolio.
These will be in addition to my other high quality gold stocks:
- Barrick Gold
- Newmont Corporation
- Newcrest Mining Limited
- Agnico Eagle Mines Limited (waiting for buying opportunity).
- Jubilee Metals (a small industry player - an interesting speculative play in precious metals scrap recovery/conversion to sellable products)
Buy FNV at $151 and belowFNV is a leveraged play on gold, although much of their revenues come from other materials. During this bull cycle, the run up from March-June produced a ~19% rise in gold and a ~58% rise in FNV. After a consolidation, a similar run in July produced ~20% rise in gold and ~34% rise in FNV. We are now in a consolidation. I believe this underperformance is primarily due to two issues: 1. investors are skeptical of the rise in gold and expect a significant retracement and 2. mine shutdowns due to COVID19 are temporarily suspending cash flows. Because FNV is a royalty company they are valued more by their cash flow than their assets so royalty companies are disproportionately impacted by mine closures accompanying a rising gold price. I expect the gold price to continue its bull run, with normal corrections, and FNV will eventually catch up in price which it has been lagging. If gold prices remain at these levels and shutdowns improve, by next quarter's earnings report this catch up may occur. Looking at Fib retracement, the 0.382 level closely corresponds with support level of $150. This may be broken to test the 0.5 Fib level, I wouldn't be surprised. If you're looking for entry, I would buy in tranches starting at $151 and below.
Long FNVTP: 157.8, 2R trade.
W base, up with volume and closed at MA 50, MA21. Watch for follow through tomorrow.
Gold shares to catchup on gold price breakoutIt will probably take over a year to go back to pre-covid economic levels. Central banks and government will keep pumping money to support the economy, which is a long-term tailwind for Gold. The precious metal will also continue to be attractive as a portfolio diversifier, its cost to hold is cheap considering low or negative interest rates.
Gold hit fresh highs on rising momentum (left chart). Gold shares should be catching up after emerging out of a double bottom (right chart of Newmont mining)
Focus on large cap, open pit low-cost producers (Barrick GOLD, Newmont NEM) or gold streaming companies like Franco-Nevada FNV or Royal Gold RGLD.
MY Perpective For FRANCO NEVADA CORPHello traders , FRANCO NEVADA CORP is in an upward movement, possibility of rising above the previous high pass the trend line to be able to fall if the buyers respond more.
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FNV price moved above its 50-day MA on June 22, 2020This price move could indicate a change in the trend, and may be a buy signal for investors. I found 44 similar cases, and 33 were successful. Based on this data, the odds of success are 75%.
FNV will come back to track Gold and form new highIn the past FNV followed the Gold but now it has been divergent to the bearish side. Now FNV is sitting on the important support which was previously acted as a resistance.
As long as this level holds up and Gold continue its rise (with DXY decline which is correlated factor) FNV should retract back to previous high and then even higher.
In case we break below the support I would recommend stay off the market and wait for the price to come back up or break even lower below the highlighted support - which would be extremely bearish for the stock but also highly unlikely.
Fib Retracement on IBD 20 stock $FNV Daily chart with Fib, overall Bullish trend indicated by the DCG Alligator. Could see price retrace to the 0.786 area, maybe the 0.618 area before continuing up.
Franco Nevada Corp (FNV - US) - Buy for 5th wave up Franco Nevada Corp (FNV - US) is all time high stock. It seems within wave 5th of wave 3 (or C) up.
Buy for last move up if getting at good price to enter with stops below 132.60.
Schiff was rightdamn this thing
really blasting off this year and the track record it has is crystal clear
longs
cover the SL and take profit, let the res ride
