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Is A-Mark Precious Metals (AMRK) A Good Stock To Buy Now?

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·3 min read
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Palm Valley Capital recently released its Q3 2021 Investor Letter, a copy of which you can download here. The fund posted a return of -1.06% for the quarter, outperforming its benchmark, the S&P Small Cap 600 Index which returned -2.85% in the same quarter. You should check out Palm Valley Capital's top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2021 Investor Letter, the fund highlighted a few stocks and A-Mark Precious Metals Inc. (NASDAQ:AMRK) is one of them. A-Mark Precious Metals Inc. (NASDAQ:AMRK) is a precious metals trading company. In the last three months, A-Mark Precious Metals Inc. (NASDAQ:AMRK) stock gained 42%. Here is what the fund said:

"A-Mark Precious Metals is a leading precious metals trading company and is well-positioned to exploit the gap between spot prices and what retail buyers for physical gold and silver are willing to pay. Longer-term investors will recognize A-Mark as a stock we bought in late 2019, and it was one of our biggest winners in 2020. Nonetheless, our estimate of the company’s peak earnings power was off by a mile. A-Mark made $166 million pre-tax over the past year, which was over twice its market cap when we bought it and 5x more profit than in any pre-pandemic twelve-month period. We believe that A-Mark’s spectacular earnings demonstrate that there are many people who want gold and silver now, and they are willing to pay up for it."

Palm Valley Capital has been a long time A-Mark Precious Metals Inc. (NASDAQ:AMRK) bull. In May 2020, we shared Palm Valley Capital AMRK’s thesis in this article.

Our calculations showed that A-Mark Precious Metals Inc. (NASDAQ:AMRK) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest-growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 12 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage.

Disclosure: None. This article is originally published at Insider Monkey.