Gold is 2025’s best performer. UBS sees more upside
In a remarkable show of strength, ASA Gold and Precious Metals Limited’s stock has soared to a 52-week high, reaching a price level of $27.15 USD. With a market capitalization of $507 million and a compelling P/E ratio of 4.36, the company demonstrates strong fundamentals. InvestingPro analysis reveals a robust current ratio of 6.68, indicating excellent liquidity management. This peak reflects a significant surge in investor confidence, coinciding with a heightened demand for gold and precious metals. Over the past year, ASA’s stock has witnessed an extraordinary rally, with a beta of 1.13 showing moderate market sensitivity. The company maintains a "FAIR" financial health rating according to InvestingPro, which has identified 8 additional investment tips for this stock. This bullish trend underscores the market’s growing appetite for safe-haven assets amidst global economic uncertainties, positioning ASA as a standout performer in the sector.
In other recent news, ASA Gold and Precious Metals Limited has implemented a limited-duration shareholder rights plan to protect against unilateral control. This decision follows a significant share accumulation by Saba Capital Management, which currently holds about 17.18% of ASA’s outstanding common shares. The rights plan, expiring on December 20, 2024, aims to prevent any entity from gaining control without offering an appropriate premium. Tensions have been high since Saba’s proxy contest earlier in 2024, leading to a board composition that includes directors nominated by both Saba and the previous board. Legal action has been initiated by Saba against ASA and certain directors, challenging the legality of the rights plans under the Investment Company Act of 1940. The case is pending in the Southern District of New York. The rights plan allows shareholders to purchase ASA common shares at $1.00 each or exchange rights for shares if an individual or group acquires 15% or more of the outstanding shares. ASA remains open to engaging with Saba, provided it aligns with the company’s investment focus. Details of the rights plan will be filed with the U.S. Securities and Exchange Commission.
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