Because the view of a weakening US$ is so uniform, there could be a bit of a rally in the near term. Over the longer term, it will still be weak. The pull back in junior golds could last 6/12 weeks, so bit by bit, week by week, they keep buying juniors such as Bema and Cambior. El Dorado should participate as well.
An international gold producer with operations, developments and exploration projects throughout the Americas. Had a big hedge book problem but that's dissipated and they appear to be turning the corner. Last quarter showed a 10% increase in gold output, revenues are up 52%. Cash flows have improved.
Continued to disappoint, first by getting its hedge book into a problem and then had high operational forces which were a surprise. Very vunerable to a takeover at this low price.
Expects marked increases in mergers and acquisitions in the gold sector, so his Top Picks are based on this. This is his 3rd choice. A fallen angel. Had a big problem with its hedge books, then with higher operational costs. Starting to turn around but very vulnerable to a major who feels it can do a better job.
A combination of troubled assets along with some good ones. Their mine in Quebec is getting a little old and a little tired. We'll probably perform well with a rising gold price but he classifies the assets as mediocre.
Stock is very cheap based on cash flow. Because people don't like things management has done, it is not moving much. The only way it can do well is a takeover.