Novo is not worth the $544 million market cap based on Friday’s close using fully-diluted shares.   Novo might eventually be worth $600 million or even more.  But that reality is several years away.  I have been recommending selling to my Mining Stock Journal subscribers for several months.  I don’t just ideas to buy, I help my subscribers avoid stocks that are overvalued, for whatever reason.

Novo Resources is a Vancouver-based junior mining exploration company that is in the early stages of exploring its Karratha gold project in Australia. It also has another gold project, Beatons Creek, in Australia and a property in Nevada. Novo had an extraordinary run in price starting in early July, when it ran from 63 cents (US$) to US$7 by the early October. At its peak valuation, its market cap was $1.39 billion. The stock began to head south after hitting $7. It plunged nearly 29% today (Dec 21) after releasing its latest exploration update.

Seeking Alpha published my analysis if Novo – you can read the rest of it here:  Novo Is Not Worth $600 million

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