Opinions Michael Bowman
Eldorado GoldELD.TODON'T BUYJun 25, 2014
Stock price when the opinion was issued
As of Jun 09, 2026. Market Open.
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Premium contentOur PAST TOP PICK with ELD has triggered its stop at $13.50. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 19%, when combined with our previous recommendations.
Premium contentDoesn't own either. Kinross has historical issues trying to right the ship, doing better recently.
For ELD, a very high 60% of NAV is exposed to development risk. Recent mine is financed and built, but there's still execution risk. Trades at a discount on geopolitical risk too.
His preference is AEM, with one of the best teams and one of the best executions he's seen over the last decade.
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Sell Telus and buy Eldorado Gold? They're totally different companies, different stories. Can't compare them. Eldorado's valuation is extended, so he'd look elsewhere. Stick with telecoms, which pay decent income and offer decent growth. People are using more bandwidth. Infrastructure and telcom stocks have been overlooked as investors have chased the tech high-flyers.
Not shorting any gold right now. Stock's run well ahead of the group, so he's not as enamoured with this name. He'd look at B2Gold. For domestic, he'd take Detour Gold. Gold is the default winner in the face of US debt putting pressure on the dollar, and will probably be higher in 6 months.
In the 30-35 years he has been doing this, he either has too much gold or too little. It is very, very hard to predict. If he plots gold stocks against gold bullion, there is only one stock that he is aware of that has outperformed gold bullion, Franco Nevada (FNV-T). He is not big on individual gold stocks. If he were to pick one, it would be Agnico-Eagle (AEM-T ). He would much prefer to buy bullion iShares Gold Bullion (CGL-T), or if you stick your neck out, Agnico-Eagle.