Welcome To The Richmont Mines HUB On AGORACOM

Richmont Mines has numerous Producing, Development and Exploration Properties in Quebec and Ontario.

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Message: From Learning Markets
Monday, 13 September 2010

Richmont Mines Inc. (RIC) [Chart - Analysis - News] established a new 52-week high yesterday at $5.25. Clearly investors are enthusiastic about the firm's prospects. The rally was accompanied by higher than average volume, which adds to the momentum behind yesterday's move.

The question is, can RIC continue moving higher? The stock has gained 24.7% during the past month, has a price-to-book value of 1.92 and a PEG ratio of 0.

Studies have shown that investors who buy stocks after hitting yearly highs during a bull market achieve higher average returns that the broad market indexes. This is a great example of the trader adage that "the trend is your friend." However, these historical results are based on large averages---and some bullish momentum in the market. It is much more difficult to say whether RIC, as a single stock, will continue to hit new highs. But for the time being, things look promising.

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