Stockchase Opinions

Jon Case Detour Gold DGC-T TOP PICK Jul 26, 2016

You really have to look at the free cash flow growth. $150 million this year, and is going to grow to $350 million over the next few years. Has an 8% free cash flow yield, and you don’t find names with that kind of free cash flow yield very often. It has assets that are large and desirable for majors, which he thinks is what is ultimately going to happen. It also has good exploration potential. Trades at 1X NAV versus its comps at 5X NAV.

$31.420

Stock price when the opinion was issued

precious metals
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DON'T BUY

Costs are going up and revenues are going down. They have done many stock issues and not rewarded their investors. When production forecasts fall short of expectations investors will go elsewhere.

TOP PICK

They just a big correction for no reason. Their last earnings report said they had good earnings and really lowered costs. They have outperformed and management has executed well. It's a great entry point now. (Analysts' price target: $16.29)

PAST TOP PICK

(Past Top Pick, June 22, 2018, Up 1%) It took a dive after earnings (and reducing costs), then recovered after management said it would restructure the company. Solid company, and he even added to his holdings.

WEAK BUY

Had a big pop in 2016. The head and shoulders chart is now gone. This stock and gold are beat down. That said, it's cheap now. Buy or hold.

BUY
Recently bought it. They used to disappoint alot and have a hostile proxy fight with shareholders. It's a large, Canadian deposit. He believes they will solve their exploration problem. There's a lot of exploration upside.
PAST TOP PICK
(A Top Pick Mar 05/18, Up 3%) They announced last year that they were having difficulty getting productivity levels in the moving of materials. There was a change in management and some of the board. The cash flow and grade keeps going up and up.
COMMENT
Loves it and is a major holding for him. Money is starting to flow into the gold sector again.
PAST TOP PICK
(A Top Pick Aug 14/18, Up 20%) In a stealth way, serious money is coming into the sector. Low cost producer in Canada. Solid assets with big reserves on the ground.
PAST TOP PICK
(A Top Pick Jun 22/18, Up 112%) He bought it cheap, underloved, a great time to buy. The big players are buying this like Hank Paulson.
DON'T BUY

They are in the process of being taken over by KL-T. The chart for DGC-T looks fairly bullish otherwise. He would buy it here unless you thought another buyer would come along.