Polymetal International Share Forecast November 2021 – Time to Buy POLY?
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Shares of Anglo-Russian precious metals mining company Polymetal International (LSE: POLY) are in the red today, currently trading a 1471p as of 10:58 GMT on November 12th. The shares have seen a 8% decline in value over the past year and 17% when compared to the highs of a few months ago in May. This cheap FTSE 100 company is on the radar of many investors.
Polymetal International – Technical Analysis
Polymetal International’s financial statement indicates that the market cap is at £7.146 billion with total assets worth £3.492 billion. Revenue for 2020 was at £2.23 billion with a profit margin of 37.91% compared to £1.76 billion in 2019. Its price-to-earnings (P/E) ratio is eight times compared to the FTSE 100’s P/E ratio which is 20 times. Little over a year ago, the shares had reached their all-time high in August 2020.
Moving averages such as Exponential Moving Average (10)(1419.6), Simple Moving Average (10)(1398.1), Exponential Moving Average (20)(1391.1), Simple Moving Average (20)(1389.4) and Exponential Moving Average (30)(1380.2) are indicating a buy action. Oscillators such as Stochastic RSI Fast (3, 3, 14, 14)(89.0), Williams Percent Range (14)(−25.3), Bull Bear Power(159.0) and Ultimate Oscillator (7, 14, 28)(59.6) are neutral.
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Recent Developments
Founded in 1998 in Saint Petersburg by Alexander Nesis of ICT Group, Polymetal International has built a portfolio of gold and silver mines across Armenia, Kazakhstan and Russia. It successfully placed £491m of shares on the London Stock Exchange, in October 2011. Thus valued the company at £3.55 billion, making it one of the first Russian-founded companies to obtain a premium listing at the LSE. It also became included in the FTSE 100 Index in December of that year.
The company has become the 3rd global primary silver producer, the largest silver and the fourth gold producer in Russia. The company into six operational units, which are categorized into centralized processing hubs and stand-alone mines. Polymetal International released its trading results recently, where it has shown that it is consistently increased revenues and has also been profitable for the past three years. Revenue and net earnings both increased compared to 2020. The company also experienced a 44% dividend growth. The company is yet to provide details of its earnings reports for the third quarter.
Should You Buy POLY Shares?
Polymetal International has a unique advantage over other companies as it is a defensive stock of the last result. In other words, because the company deals in Gold, it will hold good when everything else fails. This makes it one of the best shares to hold if you want to prepare for a stock market crash. The possibility of a stock market crash is rising as the economy has not yet recovered, but the stock markets are flying high. In such a situation, POLY shares appear as a bargain buy.
Another reason why investors like POLY is due to its dividend yield, which is 6.9% at present, significantly higher than FTSE 100’s average yield of 3.4%. Investors are encouraged by the company’s past track record of reliably paying dividends for much of the past decade.
While there is no guarantee that gold prices will increase, there are various reasons why it is a real possibility. These signs include strong inflation, a weakening US dollar, and geopolitical tension between the US and China. The company can experience prolonged revenues pressure should demand to keep sinking. Considering this, POLY is a strong buy for any investor.
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