Stockchase Opinions

Shauna Sexsmith Eldorado Gold ELD-T TOP PICK Sep 08, 2009

Best growth prospects going forward. Has done extremely well in Turkey. More products in the pipeline than most other gold producers. Recently acquired Sino-Gold giving them lots of exploration potential in China.
$12.150

Stock price when the opinion was issued

precious metals
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DON'T BUY

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.

HOLD
They exploded today with good news from Turkey. However, there is geopolitical risk in Turkey. They are moving forward with their project but he would avoid geopolitical risk. (Analysts’ price target is $10.50)
DON'T BUY

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.

HOLD
Gold companies remain cheap vs. the price of gold itself. There's a lot of room for upside. He's been taking profits to gold names to add new gold stocks to his portfolio (he specializes in precious metals). This is a hold with an $18 target. ELD has had a nice run.
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TOP PICK
Stockchase Research Editor: Michael O'Reilly Trading under book value, this is good value for a gold producer. We like that cash reserves are increasing as they are paying down debt. Cash operating costs are $803 per oz. They signed a credit facility with Greek Banks to fund 80% of their new investment in Greece. We recommend placing a stop loss at $8.50, looking to achieve $13.50 -- upside potential over 16%. Yield 0% (Analysts’ price target is $13.23)
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PAST TOP PICK
(A Top Pick Dec 13/22, Up 6.3%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with ELD is progressing well.  To remain disciplined, we recommend trailing up the stop to $10.50 at this time.

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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 13/22, Up 19.2%)Stockchase Research Editor: Michael O’Reilly

Our PAST TOP PICK with ELD has achieved its target at $13.50.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $10.50) to $11.50 at this time.

DON'T BUY
ELD vs. K

Doesn'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

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 13/22, Up 37.8%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with ELD is progressing well.  We recommend trailing up the stop to $13.50 at this time. 

premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 13/22, Up 19.2%)Stockchase Research Editor: Michael O'Reilly

Our 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.