Mid Day Market Report – Gold, Gold stocks KGC, NGD, Motorola MSI & NGMD

Gold Breaks to Upside

Gold has broken out of a wedge pattern and above the down trend channel. I am expecting gold to trade sideways for a while between support and resistance, but this break out could signal a test of May highs. Summer rally anyone?

Gold Stocks not Waiting and Testing Two Year Highs

More encouraging is that the gold stocks are responding better. They are already testing the May highs as measured by the Gold Bugs HUI index. I am expecting they will break and continue higher. Most continue to be way under valued at these gold prices. Since I called the bottom last October, gold stocks by the HUI are up almost +50%, but well below the 2020 high at much lower gold prices.

Two of our gold picks, Kinross and New Gold made new highs today. Also Solaris has a big move, Motorola makes new highs and Nugen Medical has been on a strong upward move.

Kinross Gold (KGC) US$8.95

Kinross Gold has been demonstrating robust performance in 2024. In the first quarter, the company produced 527,399 gold equivalent ounces, marking a 13% year-over-year increase. This performance, coupled with disciplined cost management, resulted in a significant 20% increase in margins to $1,088 per ounce sold. The company also generated $374.4 million in operating cash flow, with a net earnings report of $107 million ($0.09 per share), surpassing analysts' expectations . Kinross is set to announce its Q2 results on July 31, 2024, which could provide further positive momentum. The stock hit US$8.94 today making 3 1/2 year highs.

New Gold Inc (NGD) US$2.40

New Gold has also been on an upward trajectory. In Q1 2024, the company reported significant improvements in both production and cost efficiencies. As mentioned before, New Gold’s Rainy River and New Afton mines have shown promising results, with increased gold and copper production, respectively. The company’s focus on operational efficiencies and cost reductions has improved its all-in sustaining costs (AISC), enhancing profitability. New Gold’s strategic initiatives and robust project pipeline, including advancements at the New Afton C-zone, signal a strong growth outlook. The stock hit US$2.41 today, up 100% since February and testing 6 year highs. A close at $2.50 or better would signal a significant long term break out.

Solaris Oilfield Infrastructure Inc (SOI) $11.05 +33.67%

Solaris Oilfield has positioned itself strongly within the oilfield services sector. The company reported impressive revenue growth in its latest earnings report, driven by increased activity in the U.S. shale regions. Solaris continues to expand its product offerings, including the successful deployment of its Solaris Lens™ technology, which enhances data analytics for oilfield operations. The company’s commitment to innovation and customer-centric solutions is expected to drive further growth as the energy sector rebounds. After market yesterday, SOI announced that it has entered into a definitive agreement to acquire Mobile Energy Rentals LLC (“MER”), a premier provider of distributed power solutions serving the energy and commercial & industrial (“C&I”) end-markets, for a purchase price of $200 million.

Solaris expects second quarter revenue to be between $70 million and $75 million and Adjusted EBITDA to be between $20 million and $21 million for the second quarter of 2024. During the second quarter, Solaris repaid $14 million of debt, ending the quarter with $11 million of net debt.

Motorola Solutions Inc (MSI) $390 new high

Motorola continues to thrive with strong financial performance and strategic acquisitions. In its recent earnings report, Motorola Solutions posted revenue of $2.2 billion, reflecting a solid demand for its video security and software solutions. The acquisition of Ava Security and Openpath Security has bolstered its product portfolio, positioning Motorola Solutions as a leader in integrated security solutions. The company’s robust balance sheet and focus on innovation and customer service provide a solid foundation for sustained growth. MSI is not a Magnificent Seven stock but is acting like one. It hit new highs today and is up $110, from $280 in November 2023.

Nugen Medical Devices (NGMDF) US$0.115

Nugen Medical is a Playstocks pick in March 2024. Their unique InsuJet device has huge potential in the diabetes market. Nugen is making significant strides in the medical devices sector with its innovative needle-free injection systems. The company recently announced positive clinical trial results for its InsuJet™ needle-free injector, which has garnered attention for its potential to improve patient comfort and compliance in diabetes care. Nugen’s focus on expanding its product range and entering new markets positions it for strong growth in the burgeoning medical devices market. The company’s strategic partnerships and ongoing R&D efforts are expected to drive future success.

For just moving from development to sales they are making huge strides, End of June exclusive distributor in Yemen, Rosheta for Medicines and Medical Supplies, has placed a second order of 1,100 units to fulfill growing demand in the country.

As of June 26, 2024, the commercial teams of Sol-Millennium Medical Inc. in Brazil have completed the sales and in-depth clinical training required for Nugen Medical Devices Inc.'s InsuJet's launch in the Brazilian market.

Yesterday Nugen announced a three-way partnership with Wholehealth Pharmacy Partners and Sol-Millennium Medical Group to develop retail pharmacy training materials aimed at enhancing sales through major pharmacy chains in Canada.

Nugen's chief executive officer, Ian Heynen commented: "I am delighted to be partnering with an expert like Wholehealth Pharmacy Partners to accelerate pharmacist adoption of the InsuJet in Canada. With professional pharmacist training and the combined commercial efforts of Nugen and Sol-M, we are fully prepared for a successful commercial launch into the major Canadian pharmacy chains in [third quarter]."

The stock has almost doubled in July, but most trading is in Canada under symbol (NGMD)

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