Augusta Gold (G.TO)

Gold has always had an outsized place in Canadian investors' minds, even more than in the United States. However, gold now competes with other quasi-moneys, like crypto currencies. Many people prefer the newer alternatives, seeing gold as old fashioned, maybe even medieval. He has no use for gold in a portfolio and does not see it having much value as a hedging instrument. He has been zero-weighted in precious metals for a long time.

(A Top Pick April 28/17 Down 3%) It is entering a period that should make them cash flow positive in the year ahead. He keeps his gold exposure near 5% and this remains his favorite in the sector. They have a good growth profile with permits coming forward.

It is going to take gold to move a lot to move the stock higher.

A gold bullion EFT will give you gold exposure but a gold stock gives you gold leverage and possibly financial leverage. G-T used to be the darling. They had some hiccups and are now having to build street credibility, but the fix is in. He owns AEM-T. G-T would be his second choice of a name. He is looking for more clarity from G-T. He thinks this will be a name people will go to because it is an under owned name.

He uses ETFs like GDX-N or ZGD-T, and G-T is a big part of both of them. We are getting some false alarms but this is a bit of a break out. Inflation pressures in the coming year would be good for this stock. Inflation numbers are what are going to drive gold this year.

Very low exposure in her portfolios to gold. If they wanted to add exposure to gold this is the company she would invest in. Very well managed. Better investment opportunities out there.

This has come off but is still too expensive. It is rare for him to buy a stock over $10.

Their production has really fallen back but they have their 20-20-20 plan. They have a management team who are veterans. They have the skill set to extract maximum value out of the assets and make it into a more efficient operation.

If you want to buy the story, first of all you have to ask yourself if you want to own gold. Gold is looking very bullish. Lower rates used to be the driver of gold, but now you have higher rates and gold is acting well. There’s been all the crypto competition coming in now, and yet the metal is acting really, really well. What is really going on is that the US$ has been weak for the last year. If you believe in gold, this company sets up pretty nicely. They plan to advance organic growth in their portfolio, instead of M&A. The stock is pretty cheap, trading around 1X its NAV. He models 20% cash flow per share growth over the next couple of years.

It’s unusual for him to recommend a gold company, but this is one of North America's largest. It’s located in Mexico, Chile, Dominican Republic and Argentina. Relative to other gold companies, you are taking on less political risk. They target growth between 2017-2021 of 20% lower costs, 20% growing reserves and 20% growing cash flow. Dividend yield of 0.7%. (Analysts' price target is $22.69.)

Based on seasonal studies, people suggest December is a good time to buy gold. It is one of the more senior gold stocks. Sometimes they have a rotation where each one underperforms in subsequent years. This year however, BitCoin has outperformed. He thinks this is a good time to buy gold.

(Market Call Minute.) Has very little gold exposure. Gold prices have been very weak, and she doesn't see any urgency to get into this. She is not adding to her position or buying for new accounts right now.

They will do what the underlying commodity does. It is a bit of an opportunity here. It is starting to get a lot more interesting here. It could fall another 10-15% if gold keeps going down. He is nibbling way here, however.

(A Top Pick Nov 30/16, Down 7.8%) He sold because he wanted to reduce gold exposure. It had been the laggard and but now showing some luster. $13 to $14.50 could be a place to buy it back.

He owned it in the past. They are trying to clean it up. He is not keen on gold but it would be his favourite senior if he was buying one. It took a leg down this year. The entry point is good if you like gold. He is not tempted yet.