Agnico-Eagle Mines (AEM.TO)

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.

Historically, with an increasing volatility, stocks like this move higher. The period of seasonal strength for gold is around the middle of July through until around the beginning of October. Technically the stock is starting to show signs of bottoming, which is encouraging. Once the stock breaks through its resistant level that will confirm that the trend is once again moving upward.

This is his core holding for gold. They definitely deliver on performance. Have just acquired another company and it is nice to see management acquiring at this particular time. They are building this great leverage for when we do get a turnaround.

The core of his precious metals holdings. One of the few companies that has actually been making money through this period. What they have been doing is buying up the competition. Has a great financial leverage.

Gold companies are looking for opportunities to lower costs and stay economic. Lower gold prices have made it difficult for them. This one has been hammered during the past year and is trying to form a nice little base pattern. Gold has 2 periods of seasonal strength, July through to October, and the middle of December through to the middle of March. Watch for gold and gold stocks to move significantly higher on a seasonal basis.