Sector-wide M&A speculation in gold mining is adding a premium to smaller producers like NGD. Such corporate interest reinforces a more favorable NGD stock price forecast among equity analysts. Because New Gold made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about New Gold (NGD). Options activity around the $1.75 strike has picked up, with calls outnumbering puts. This options positioning hints at bullish expectations for the NGD stock price forecast in the next two months.
