<
GMP data by YCharts
If GMP Capital Inc's, (GMP) business is fully integrated in the resource space, then you could reasonably expect the shares of the company to mirror the resource markets at large, especially the Canadian junior space (granted, many assumptions need to be made).
GMP runs a predominately, institutionally-focused business whereby they underwrite or advise resource companies. So their business model is completely dependent on the large resource investors, or ‘smart money’s', willingness to invest in the sector and/or other resource companies finding value in the sector. Either of them increasing would be a positive sign for the sector.
GMP’s shares have been on a run as of late and appear to be breaking through resistance formed this time last year. GMP is coming off a few large, bought-deal financings including the Barrick Gold Corporation, (ABX) +$3 billion deal and $150 million and $175 million deals for HudBay Minerals Inc., (HBM) and Platinum Group Metals Ltd., (PLG), respectively.
The company’s shares typically perform well, along with the Canadian resource indices, in the first quarter of each year, but now the company looks to be headed toward levels not seen since January 2012. Although not nearly at the 2007 levels, there are still many stories to be excited about this year.
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.