Stockchase Opinions

Jon CaseDetour GoldDGC.TOTOP PICKMar 05, 2018

It is a higher cost asset. It is more volatile. They have a cash flow profile that will drop in a couple of years. The stock is off while investors plan to come back to it in a couple of years. You are buying it for the cost of the infrastructure. He would prefer to hold it for two years. (Analysts’ target: $20.44).

$12.15

Stock price when the opinion was issued

precious metals
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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.

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.
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.
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 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.
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.
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.

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.

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)

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.

HOLD

He has been early getting into some gold stocks like this one. He is now extremely concerned about what is going to happen in the States. Gold and gold stocks are the most under owned assets of any, yet gold is a superb defense. He thinks we are getting set for a huge move in the price of bullion.

DON'T BUY

Huge mine in Ontario. They have come down a great deal. They have a tremendous amount of debt. The balance sheet is not great.

BUY

One of the cornerstones of a Canadian gold portfolio. This stock will rise or get taken over.

COMMENT

A high-quality Canadian deposit. Had some teething problems operationally. Good exploration upside. Either the share price goes higher or they get taken over in 2018.