Agnico-Eagle Mines (AEM.TO)

(A Top Pick Oct 30/18, Up 11%) This become self-sufficient by 2021 and won't need to raise money for their future projects. A rare company in this space that's raising their dividend. Good management.

As gold is out of favour, he loves this from a contrarian view. It is the best gold company with a great growth prospect up North. Gold will come back in favour at some point. When the US dollar weakens, gold will benefit. Yield 1.3%. (Analysts’ price target is $65.64)

Gold is an enigma--sometimes is a currency or a hedge against inflation or something else. What's holding back gold now is that it's the inverse of the U.S. dollar--which has been strong this year. Producers like Agnico have operating leverage--when gold prices rise, their prices and earnings will rise disproportionately more than the commodity. Agnico has several mines operating well. It's a good house in a bad neighbourhood.

(A Top Pick August 28/17 - Up 5%) Covered call selling JAN 60 calls. They were called away.

Gold has been hit, though gold stocks have held up. July 27-September 25 is gold's seasonality. He likes AEM, because it's had a consolidation (following a downdraft earlier this year) and gold is entering seaonality, This should do well.

One of the best-run companies. He's excited by the price dislocation with the recent pullback in gold prices. Agnico is holding on well. They've had a lot of cash and have been acquiring over the years. Good management and has assets in safe geographies. A fine company.

This would have to come down a long way for him to have interest in it. The overall market has been very strong, it is not clear which way the market will go in the future.

The commodity is going one way and the stocks are going the other. It has always been the darling premium amongst the names. They are expensive for a reason. He finds opportunities at lower PEs. He sees greater value elsewhere.