Eldorado Gold (ELD.TO)

Likes all of the golds. Trading at about BV, which is cheaper than the average gold company. Cost of production relative to current price is still good. It will have nice leverage on the upside if gold goes higher. It’s a long ways from its peak Price to Book of 4 times. Yield of 0.24%.

Hasn’t made many mistakes. It is so volatile that you can put puts and calls on it and it is like owning a parking meter.

(Guest Specified EGO-N) It really stood out from his internal research. He rates it as a sector outperform. It is a great entry point for this one.

Gold is moving, but he is not a bull on gold. Gold has reacted very favourably to what we have seen in the last few weeks such as concerns over the emerging markets. This is a good company to own, if you are bullish on gold. He sees gold prices moving lower from here. If you want something that is kind of defensive, look at Silver Wheaton (SLW-T), which is really a silver royalty company, but with some gold streams. Goldcorp (G-T) is another name to look at.

Period of seasonal strength for gold and gold stocks is July through September. This one is outside of that period of seasonal strength, but you still get a bit of a push in the metal stocks. Silver and copper stocks are doing well and that can lift gold stocks. However, they still tend to underperform the market. This one has tested $5.79, a good number of times, so it looks like it is trying to build a base.

(Market Call Minute) Part of his core portfolio. Great management team, lots of growth, build out and challenges.

Big down trend going on. It is trying to form a base here. Wants to see it get above $9 and then maybe it will base build. You want to see it break the down trend.

Just had a problem this week where they cannot ship ore at one of the Brazilian ports. Very good gold company. Viable here if you can hang on until the sector recovers. Production base is good and their assets are good. Higher risk because some of their assets are in foreign jurisdictions. Feels the fair value is in the $10-$11 range. In a better gold situation, the stock could go to $14-$15. If you’ve got 3 years, you will do okay with this.

Chart shows it has taken out its mid--2012 low which is not a good sign. If you own, do not average down at the moment. Wait to see if this can creep back above the 2012 low and then wait for a trend. Also, he would favour North American assets.

Because resources are still in freefall, this one falls in a tier below Barrick (ABX), Goldcorp (G-T), etc. Incredible growth in multiple jurisdictions but costs are not that great and visibility is not that great. You want to see the whole industry bottom out. Have permitting issues in Greece.

Well managed fine company in poor jurisdictions when gold is out of favour. Turkey, China, Greece. It gets picked on. It is cheap and if you have a long term horizon and think gold will go beyond $1700, then it would be a candidate.

(A Top Pick May 24/12. Up 9.45%.)

After fiscal cliff, we have low interest rates and QE and this would run under the resulting scenario of higher gold prices. Greece, Turkey and China. Well managed. Holds others

Potential high growth company. Interesting opportunities in terms of Greece. Some of the lowest costs in the industry. Prepared to take on some of the jurisdiction risk because of the growth prospects.