Paul Harris, CFA
Gillette Co
G-N
BUY ON WEAKNESS
Jun 30, 2005
New management is better placed to take the company to new levels. Company is now a little more diversified from gold. Fairly valued at these levels. Wait for a hiccup along the way. Prefers Barrick (ABX-T) which is cheaper.
A defensive holding. Likes consumer staples at this time. High quality company, and predictable growth. Trades at about 25 X earnings. A little pricey, but worth it because of predictability.
Most investors should own 5/10% of their portfolio in gold at this time. This has not been one of the better performers. New management is coming in. Would prefer Placer, Newmont or even Barrick.
Doesn't think the market really appreciates what a great deal this company got when Barrick (ABX-T) spun their Red Lake assets. They are now tops in that patch. Has shown some pretty good earnings growth.
(Top Pick Jul 23/08 Down 7.75%) Still holding. A leader in gold industry. It’s here to provide some protection. Still making good money. Protecting against US continuing to print money.
(A Top Pick July 3/08. Down 13.23%.) Was stopped out at a 14.3% decline. Not a gold bug but thinks in the fall gold will break out above $1000. Gold stocks are lagging so the ones that will follow the price of gold will be the big caps. (See Top Picks.)
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