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One of the few sectors that is rising today in what is looking like a post-election selloff is the gold & silver miners. One cheap stock in the sector that has picked up some positive catalysts recently is Aurizon Mines (AZK).

Key recent positives for AZK:
 

  • The election should provide a tailwind to gold prices as investors worry about continued gridlock, the coming fiscal cliff and the non-checked easy money policies of the Federal Reserve.
  • Dundee upgraded the stock to "Buy" from "Neutral" in late October.
  • Consensus earnings estimates for FY2013 have moved up nicely over the last month.

Aurizon Mines produces gold from its properties in North America.

4 additional reasons AZK is a good speculative play at $4.70 a share:
 

  1. The company's properties are in geopolitical stable North American regions so immune to some of the labor unrest that has plagued the majors like AngloGold Ashanti (AU).
  2. The six analysts that cover the stock have a median price target of $6 a share on the stock.
  3. After falling about 4% in FY2012, sales growth is poised to grow in the high single digits in FY2013. I think the market will start to price this in by end of this year.
  4. The company has a robust balance sheet with over $200mm in net cash on its books. This represents over 25% of the Aurizon's current market capitalization. Subtracting this cash leaves AZK selling at around 9x forward earnings.
Source: A Small North American Gold Stock To Ride Out The Post Election Sell-Off