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.
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.