Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Torex Gold: Enthusiasm Over The Financing Announcement Offers Investors A Chance To Exit An Overvalued Stock

Torex Gold (OTCPK:TORXF) has been bucking the downtrend in gold miners over the past several weeks. The reason: the company announced that it would receive financing for the remaining $375 million it needs to develop its Morelos project. The stock spiked on the April 16th news, and it has held these gains despite weakness in the gold market and in the gold miners. This is illustrated in the following chart of Torex Gold shares in terms of the Market Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ).

(click to enlarge)

(Source: Stockcharts.com)

The news is certainly a positive for the company, and there are two reasons for this. The first is that management won't have to issue...

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