Multi-Year Lows Tarnish Gold Stocks

NEW YORK ( TheStreet) -- Today I profile eight gold mining stocks that have become tarnished as their stock prices fall. Three are still above their 2012 lows, but five have been setting new multi-year lows almost daily.

Weakness in gold mining shares is telling us that Comex Gold could be at least headed for a test of its December 2011 post-bubble low at $1523.9. This scenario is enhanced by the fact that all eight gold miners profiled today are well below their 200-week simple moving averages, while gold is not as shown in the weekly chart.

Comex gold has been above its 200-week SMA since February 2002 and this key moving average is currently at $1417.5, which is the downside given a trend below the December 2011 low at $1523.9. Gold has been trading back and forth around my annual pivot at $1599.9 so far this year.

Chart Courtesy of Thomson/Reuters

At we show that 58.6% of all stocks are overvalued with 15 of 16 sectors overvalued with 8 overvalued by double-digit percentages. Gold mining stocks are in the one sector that's undervalued, which is basic materials, undervalued by 7.0%. The gold mining industry is undervalued by 32.7% with today's eight stocks undervalued by 29.4% to 56.7%. Performance wise, 7 of 8 stocks are down 29.5% to 56.8% over the last twelve months.

Reading the Table

OV/UN Valued: Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.

If you liked this article you might like

How to Trade Red-Hot Gold While Everyone Obsesses Over Bitcoin

Barrick Gold Glitters Enough to Draw Buyers

Little Reason to Buy, Plenty for Concern

If There's a Rally, It Won't Last Long