Augusta Gold (G.TO)

(A Top Pick Oct 19/16. Down 19%.) This was a call on the gold sector generally. The new CEO has a 20/20/20 plan of increasing reserves by 20%, increasing production by 20% and cutting costs by 20%. He is getting there. He still likes this.

(A Top Pick Nov 30/16. Down 10%.) Gold is up, but this stock isn’t. They changed the CEO 1.5 years ago, and he made changes. Feels it is now a “show me” stock. He sold his holdings.

This has been one of the weaker gold stocks in the last while. Yesterday, it broke below support, and as well, the stock is in a downward trend. Not a good situation. Better opportunities exist elsewhere.

This has been suffering. Selling at its relative valuation, a discount. A bit of a “show me” stock at the moment. Thinks management has a very good long-term plan, but investors are kind of sceptical in the short term. There are better purchases right now. (See Top Picks.)

(Market Call Minute.) This is in a “wait and see” mode, to see if they can get back their former glory of consistent execution.

(A Top Pick Oct 11/16. Down 7.53%.) He still likes this, and wouldn’t hesitate to keep on holding it. Thinks that everybody should have about a 10% exposure to gold in their portfolio. He tends to like the leverage in some of the smaller players.

It had always been his favourite senior, but they had operational difficulties. It has not come back.

(A Top Pick Oct 3/16. Down 22.73%.) Had some difficulty with their mining, grades and production. Brought in a new CEO and are now putting this in a “show me” mode. When it turns, it will turn with a vengeance.

Like all the gold companies, this is going down in price. This has been challenged in the operational front. His model price is $22.57, a 40% upside. However, he has had a Sell signal at EBV -1. The next level is $14.36, and he wouldn’t be a buyer until we reach that level.

He is not yet a shareholder although he likes the changes being made there operationally. He is waiting to see if these changes are enough to turn the company around. He needs to see better operating performance, margins and some write downs.

Seasonal period for gold miners is usually from July into late September and the beginning of October. Chinese have been big buyers of gold. 10-15 years ago that wasn’t the case. There have been some run ups in January. You have to realize there is a little more risk to gold miners because they are leveraged to gold. Gold can do well, but if the stock market is not doing well, gold miners are probably going to pull back also. Right now, we are in the downtrend for gold miners.

Golds really haven’t done much over the last while. He is very much on the sidelines. However, they have a valid role to play in portfolios, particularly if we get into more difficult markets. This is a good, solid company. Right now, he is neutral on gold.

Regardless of whether gold goes up or down it depends on whether the individual gold producer goes up or down.

They report tomorrow. The numbers are going to be mixed in gold producers. On a technical basis, G-T is starting to form a base and typically bottoms about now. A move above its trading range would signal the start of its seasonal trade to the beginning of October.

(A Top Pick Aug 11/16. Down 30.13.) It behooves any investor to have 8%-10% of their portfolio in gold stocks. This one is cheap on a Price to Book basis.