Alamos Gold Inc (AGI.TO)

(A Top Pick Oct 20/15. Up 64.43%.) He chose this one because it had a good quality balance sheet. It is a junior miner and therefore had lots and lots of leverage against the price of gold, which he had been expecting to go higher. Also, felt the company was working hard at reducing costs and that earnings would start to surge up. It is still quite cheap, trading a little above its BV.

He remains bullish on this stock and on gold. It will have to go up, given the balance sheets of countries around the world.

A very high quality mid tier. Good balance sheet. Mature mines.

This looks like most gold stocks. The downtrend was broken this year. A few of his technical indicators on the daily chart were showing a little overbought on gold. This is not a doom and gloom scenario though. If it pulls back, that will be a buying opportunity.

(Top Pick Mar 17/15, Down 7.41%) The price of bullion has made a permanent turn to the upside. He is keeping this one. He likes gold right now. Look at what world banks are doing and what is the long term affect – dilution of money. Gold has to do well. He likes Canadian gold assets. He likes the company’s balance sheet. There is staggering leverage on the price of bullion. He thinks gold will do very well for the this and next year.

He has a quarterly, weekly and daily buy signal in gold. He is generally optimistic across all gold stocks. If the price of gold moves up you will see a significant earnings revision. This one has a huge leverage to gold. Hold it for two years, or get an ETF or one of his top picks.

(A Top Pick March 17/15. Down 40.7%.) Had thought that it might be time for bullion to start to move again. Instead, it has formed a nice base. It is still his view that gold stocks and bullion are dead cheap. If you own, continue to hold. (See Top Picks.)

You don’t want a gold stock that is down today. The fact that it is up today is a good sign. It is underperforming right now. Go with the strong stock or buy the XGD-T

Doesn’t own this, but it falls within the spectrum of the companies that he likes. It has a mine in Ontario with Canadian cost of production. However, it is not benefiting the way others are. He recommends you add to those producers who have been moving over the last year, such as Detour Gold (DGC-T). Thinks this company will go through this as well.

They merged with another company last year. It is a large producing mine and strategic to them. It is down because they deferred some of their down-the-road production to focus on the current project. He prefers larger names. He does not like these transition periods.

The problem is that it is making lower highs and lower lows. The other possible problem with the stock is that the underlying commodity, gold, is declining. Gold itself has broken technical support. He has a problem with gold itself and most of the gold producers. What you want to see is confirmation that it is making a base and breaking of the trend line. At this point, this is still in a downtrend.

His company has this as a sector outperform. The 3 qualities that he looks for in these companies are good management, low production cost and where they are located politically. He thinks this will have the leverage when we have the re-bounce in the price of gold.

Rising interest rates could put downward pressure on gold. Chart shows a long downward trend from 2013, but a small base is showing. If it broke down through that low, that would be a concern. He would give it a 2%-3%, maybe a little bit wider berth of breaking the trend line before deciding if you should Hold or Sell.

So far the highs are most definitely getting lower. The one potential positive is that the most recent price is lining up with the past low. If the stock holds at its support level in July, then your next target of resistance is going to be around $5.50 area. If that is taken out, then major resistance comes in at $8.40. He would not buy this unless it held its current level. If it does and it moves up, then take a position. If it then broke the $5.50, then take a 2^nd position.

This has a very, very strong balance sheet, with about $4 in cash per share. Fairly recently a company merged with them because it had a weak balance sheet and it needed Alamos’ strength. He really likes this company and is buying it principally for its balance sheet.