Puregold (PGOLD): Digging for Pure Gold

January 23, 2021
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Puregold (PGOLD): Do you wish to dig for gold? For pure gold? You can, literally, by buying shares of Puregold at the stock market.

puregold, logo

Puregold Price Club, Inc. (ticker symbol: PGOLD) has been sidelined by investors recently. In the last three months, its price gradually drifted down from a high of P44.70 per share to its last closing price on Friday, January 22, 2021, of P38.45 per share. That’s a decline of 14%.

As the chart above shows, the 50-day moving average price is at a steady downhill although the curve is already flattening. It currently stands at P41.06, 6.7% above the last closing price of P38.45.

Recent Events

  • Regular cash dividend of P0.25 per share and a special cash dividend of P0.20 per share or a total of P0.45 per share, with ex-date of January 5, 2021.
  • Renewal of the company’s shares buyback program of up to P5 billion for another year.
  • Submission of mandatory 3Q 2020 report.

PGOLD reported a decline in the third quarter earnings this year. This is attributed to consumers cutting back on purchases amid tight budget and transport restrictions. But even with this decline in sales factored in, fundamental analysts see PGOLD as still undervalued. Ten out of 11 analysts give PGOLD a BUY rating, with an average target price of P51.72.

The recent sell-off of PGOLD is a good break for investors to accumulate shares. It is an opportunity to dig for gold, so to speak. And pure gold at that.

Disclosure: The author is not related to any employees or officers of Puregold and is not in any manner working for Puregold or its affiliates. He is not holding any shares of Puregold at the time of this writing.

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