Agnico-Eagle Mines (AEM.TO)

Have some pretty high-quality mines in Canada with fewer political risks. It tends to receive a premier valuation because of the perception that it is a well-run business. However, even in a case like this, where it has generally been seen as one of the better run gold companies, looking back over the years, they haven’t created a lot of free cash flow and value for their investors.

Gold is not an investment in his view, it is a speculation. Gold companies have been absolutely dynamite for traders in the last 3 months. He is not a gold owner, and doesn’t understand why gold is doing what it is doing. If you are a trader, have a good time, but look at the charts and understand that you have to be agile.

It is his ‘second’ gold mine. He is starting to deploy more cash. He already has G-T, but this is one of those go-to names. They will do well as gold prices recover.

(Top Pick Oct 6/15, Up 17.70%) We are now going through a corrective period (wave two). The key here is not to make a new low.

It has been a star recently. It is a gold company that pays a dividend. There is 10% trailing cash flow so lots of room to increase the dividend. 2.3% free cash flow. PE is .38. It is one of the few gold companies with attractive fundamentals going forward.

It is one of the better gold stocks. It is a fantastic strong performer compared to XGD-T.

(A Top Pick Dec 12/14. Up 39.32%.) Will be reporting earnings in February and it will be interesting to see what they do with the earnings expansion Canadian producers are having. Thinks their earnings in February are going to surprise to the upside. He would pick this up on any weakness. On a long-term basis, all the assets they have are going to pay out very well for long-term shareholders. Dividend yield of 1.11%.

(A Top Pick Dec 12^th/14. Up 37.95%.) Has beaten the Dow year to date by about 10%. Thinks this will be the best of the senior producers. Because they are making money in this environment through low cost of production, they have been able to acquire many projects. Dividend yield of 1.12%.

(A Top Pick Oct 6/15. Down 11.04%.) Today was a bad day, but he thinks it will get over it. This is one of the stronger ones. Feels it will consolidate here and then move higher. If you own, continue to Hold.

Has good quality mines in safe jurisdictions of North America and Europe. With the takeover of Osisko (OSK0T) last year they were basically able to increase their output 30%. They are going to be producing 1.6 million ounces this year, and the all-in costs is under $1,000 an ounce, i.e, the sustaining costs not the cash costs, which is about $300 an ounce lower. Dividend yield of 1.12%.

(A Top Pick Nov 12/14. Up 34.59%.) This is still the core of his gold position. Great management. They keep growing their reserves of their properties.

This and Silver Standard (SSO-T) are the core of his gold position. Both companies have great management and continue to acquire properties, continuing to lower the costs. Over the next couple of years, these will be great, great investments.

The sector is very diverse. This is one of the stronger gold stocks that he has seen. There is a low and a higher low and today we took out the pivot point. FNV-T is the other leader. They will lead the parade and drag the entire sector up.

Bullion has actually bottomed in the last 4-5 trading days for an intermediate seasonal low. However, gold stocks not so much. They typically bottom around the last week in July. Hold off until you get signs that are showing a bottoming pattern. The stock chart is showing a downward trend, and has as yet to show signs of bottoming. Look for technical signs of support, probably within the next month or so and you want to see the stock start to perform and momentum indicators turning positive.

The bellwether name in the large cap senior gold space. One of the lower cost producers. They generate free cash flow, and the wealth creation is also there. Have a new discovery at their Amarouk in Nunavut with a mill not far away that is running out of ore in the next few years. This is the kind of wealth creation he is looking for. This will probably continue to outperform as long as they can continue to grow that asset.