Must be one of the cheapest Gold stocks on the ASX IMO,trading...

Must be one of the cheapest Gold stocks on the ASX IMO,trading on a PE of about 7 and a 6% dividend yield.

Lincoln Indicators has ranked its possible outperformers in 2010 in several categories.

Best 'Hot Stock' Categories
Best Small Cap Stock:Strike Oil Limited (STX)
Best Micro Cap Stock:North Queensland Metals Limited (NQM)
Best Income Stock:Telstra Corporation Limited (TLS)
Best Engineering Stock:Monadelphous Limited (MND)
Best Retail Stock:Wotif.com Holdings Limited (WTF)
Best Financial Stock:Westpac Banking Corporation (WBC)
Best Health Care Stock:CSL Limited (CSL)
Best IT Stock:Reckon Limited (RKN)


The methodology used to rank companies is based on Lincoln's 'Nine Golden Rules'. Stocks are analysed against a series of key indicators, including financial health, management, share price value, liquidity, share price trend and market capitalisation. The stocks that perform strongly against each of these criteria are given a 'Star Stock' rating by Lincoln.

"Our selection criteria identify companies that have achieved the strongest growth in earnings, maintained strong financial health, expected to grow their business, and of course reward shareholders with share price performance and/or generous dividend payments," said Mr D'Amato.


Best Micro Cap Stock
North Queensland Metals Limited (NQM)
NQM is a micro cap gold producer which may be suitable for investors with a healthy appetite for risk. The company's main focus is the Pajingo Gold Mine joint venture (60% interest) project in Queensland but is exposed to a number of exploratory projects as well including Dotswood, Baal Gammon (Copper) and Twin Hills. The company experienced strong growth (150% EPS growth) in the last year due to combination of a ramp up in production and strong gold prices.

NQM's performance is expected to continue to improve as production and revenue improves to capacity over the next two years. The company is pursuing a 'brownfields' growth strategy focusing on existing and former mines, generally considered a low risk strategy. NQM has paid its maiden interim and final dividend this year, totaling 1.8 cents per share and expect to continue paying dividends going forward. This payout is supported by strong cashflows from the company's Pajingo operations, the company's strong cash balance and lack of debt on its balance sheet. However, the rising Australian dollar and historically defensive nature of gold exposure could be a headwind for the company going forward as the economy lifts itself from the financial crisis.

www.lincolnindicators.com.au/Articles/HealthOfTheMarket