- Luna Gold is significantly under-performing its peers in 2014.
- While this could be due to short term catalysts a closer look at the company reveals significant constraints to its upside valuation potential.
- There are two reasons for this--the fact that the company sold 17% of its gold to Sandstorm Gold at a fixed price, and uncertainty regarding future capex.
- While the company has enormous speculative upside potential the reward is not worth the risk at the current valuations.
- Investors looking for a speculative play on gold exploration should hold off for now.