Opinions
Benj Gallander
Eldorado Gold
ELD-T
COMMENT
Nov 03, 2017
Stock price when the opinion was issued
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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.
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.
Premium contentPremium contentPremium 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.
Premium contentPremium 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.
Has been on his watch list for years. Greece is their big growth prospect. They were having all kinds of difficulty with the Greek government. Recently the government capitulated to some degree. The company was threatening to leave the country. They've spent well over $1 billion already. They employed a lot of workers who demonstrated against the government. It's a fascinating contrarian play. If you buy into a stock like this, you have to be very, very patient.