BOULDER, CO / ACCESSWIRE / September 3, 2015 / Depending on what radio station you tune into or cable channel you watch, the stock markets either overpriced or fairly valued. In general terms both of those statements can always be true depending on which sector of the markets your referring to. Commodity markets such as corn, copper and gold have bounced off their lows recently while oil appears to be bouncing around the $40 support level. Gold on the other hand, hasn't really gone anywhere the past few months, although most of the price action has been to the downside.

With stocks mired in their long awaited correction, some serious value investment opportunities are taking shape, especially in commodity based stocks. It was inevitable. The market had nowhere to go but down as everyone waited for the much anticipated federal reserve interest rate hike. And the most broadly announced and confusing interest rate move of the last decade may finally come in the next few weeks around the next Fed meeting later this month. But by the time that decisions been made, the fireworks and fallout might already be over.

Virtually every major central bank in the world has been actively involved in historic monetary stimulus programs during the past few years, so investors would have thought that an investment in gold or gold stocks would have been a "no-brainer." No such luck. Had you bet on gold going higher you would have missed the entire rally in stocks, the past few years, as you painfully watched the precious metal trade sideways to down in a tight trading range.

The predominate players in the gold market have all seen significant deterioration in the price of their shares during the past six months. Gold, Inc. (NGD), Barrick Gold Corporation (ABX), Gold Fields Ltd. (GFI) and AngloGold Ashanti Ltd. (AU) and almost all of the gold stocks, for that matter, are now trading near or slightly above their fifty two week lows. This is one sector of the market that just hasn't seen any meaningful upside in quite some time. So is it time to take small positions in a few of these names?

Ironically, while U.S. stocks were in a free fall, gold stocks should have been a good investment but many of these companies are not in a good fundamental position to attract meaningful investment . So while domestic equities get pushed lower, short term, most analyst who follow the metal, don't really see gold trading much higher in the near future and fundamental factors also don't seem to be favoring a meaningful upside move n the precious metal.

With all that pessimism, contrarian investors might think this is a good time to take a position in some of these badly depressed gold stocks. And they may be right. Even though gold broke down to a new two month lows recently, many mining stock did have green trades last week, bucking the downward trend in the metal. Primero Mining Corp. (PPP), Sandstorm Gold Ltd. (SAND), Kinross Gold Corporation (KGC) and Eldorado Gold Corporation (EGO) all ended the week on an uptick.

Shares of most gold mining companies are selling at steep discounts to their historical multiples even though many of them can still be profitable with gold prices at these levels. So the slightest hint of stabilization in the metal could bring investors back to these stocks in a big way.

Dynacor Gold Mines Inc. (DNGDF - $1.07) is an interesting microcap gold play that deserves a closer look by value investors who want to have a position in a microcap company operating in this sector of the market. Dynacor has gold and silver ore processing operations and exploration projects in Peru. The Company recently announced earnings for the quarter ending June 30, 2015.

Despite weakening market conditions Dynacor registered net income of US$ 0.8 Million (US$ 0.02 EPS) and EBITDA of US $2.0 Million during the June 2015 quarter. Cash on hand of $13.3 M at June 30, 2015 compared to $14.0 M at December 31, 2014. Gold and silver sales were $20.2 M (cumulative six-months $39.0 M).

DNGDF has set its 2015 production guidance in the range of 64,000 to 68,000 ounces of gold which is down slightly from last year. Lower gold prices have had a negative impact on the Corporation's second quarter gold processing operations. But overall, DNGDF is looking to increase its ore processing inventory by the end of Q4-2015.

Support appears to be developing around the $1.00 to $1.10 level which is just slightly below the fifty day moving average at $1.25. For more information on Dynacor Gold Mines Inc. visit http://www.dynacorgold.com.

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