Royal Gold, Inc. ($RGLD) Possible Buy to $107 Confident Investor Rating: Good

Company name Royal Gold, Inc.
Stock ticker RGLD
Live stock price [stckqut]RGLD[/stckqut]
P/E compared to competitors Fair
MANAGEMENT EXECUTION
Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good
ANALYSIS
Confident Investor Rating Good
Target stock price (TWCA growth scenario) $123.11
Target stock price (averages with growth) $156.06
Target stock price (averages with no growth) $112.82
Target stock price (manual assumptions) $108.8

The following company description is from Google Finance: http://www.google.com/finance?q=rgld

Royal Gold, Inc. (Royal Gold) together with its subsidiaries, is engaged in the business of acquiring and managing precious metals royalties and similar interests derived from production. The Company focuses to acquire existing royalties or to finance projects that are in production or in development stage in exchange for royalty interests. As of June 30, 2010, the Company owns royalties on 33 producing properties, 23 development stage properties and over 130 exploration-stage properties, of which the Company considers 37 to be evaluation stage projects.32 producing properties. On January 25, 2010, Royal Gold acquired an interest in the gold produced from the sulfide portion of the Andacollo project in Chile (Andacollo Royalty). On February 22, 2010, the Company, through RG Exchangeco Inc., wholly owned Canadian subsidiary of Royal Gold acquired all of International Royalty Corporation (IRC).

Confident Investor comments: The target price on this stock is likely a bit too high. Royal Gold is a reasonable play on the gold price and that is driving the valuation. If the price of this stock starts to approach the target price but the price of gold has not similarly increased then there would be instability in the stock price. However, at this price and at this time, I think that a Confident Investor can confidently invest in this stock.

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