Amit Ghate
Long/short equity, value

Gold Resources: An Asymmetric Risk Reward Opportunity

[Caveat: In the following I will argue that Gold Resource Corp's (NYSEMKT:GORO) current market valuation is conservative even if no new positive developments ensue for the company, and that potential drill targets might add significant value to the company if they hit. But please keep in mind that GORO is a junior gold company, so no matter what the asset base or what other bullish arguments exist, owning the stock is inherently risky.]

A year or so ago I wrote about a long position in the gold miners in general (NYSEARCA:GDX) and (NYSEARCA:GDXJ) and a particular position in GORO. As a basic long term sector bet, the arguments and caveats in that article still...

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