Iamgold Corp (IMG.TO)

Well-managed. Undervalued compared to its peers. It has several projects on the go. It has strong leverage going forward. Good management. Money will move in at some point. They boast low production costs, diversified assets in safe geopolitical areas. (Analysts' price target: $9.55)

Solid technical pick. Has owned for a while. One of the better names since the spring. Nice little trend, but pretty choppy. Have to stick with it. Resistance around $8.10. Only down $0.11, when gold’s down $30, so it’s held up quite well. Excellent producers. A drop to $7.25 would indicate something’s wrong. If it gets through $8, look for $9. (Analysts’ price target is $9.60.)

The whole gold space has been pretty volatile. Around $7.56 is pretty critical. There may be some pretty big swings up and down as it comes back to its trend line. Thinks gold is going to be a pretty good long-term investment, but a much better price over the next few months. This is one of the stronger names, but is susceptible to some big swings.

This has been on his triple A list for a number of years, but he has never quite bought it. This is not the time of year he buys stocks. This one is interesting because there is so much news.

He never averages up, only down. Gold has been hit because of the US dollar and interest rates going up. China is limiting the amount of gold that can go into the country and India is eliminating some of their currency. You have these strong currents against it. Trump is positive for gold because you never know what he is going to say or do. Gold is an interesting play at the right price point.

Gold had a pretty good year, but there has been some weakness in recent months, and this company has been a part of that. A much more conservative way to play gold is just to buy gold bullion. That way, you are not taking on balance sheet risk or management risk.

(Market Call Minute.)

(Market Call Minute.) Interesting. It might be a Buy. It is always a laggard on gold. When golds are positive, it lags. Look at it in the fall. If it has not moved and the other golds have moved, it would then be a Buy.

Doesn’t own a lot of gold companies because most of them are really bad businesses. They rarely earn their cost of capital through the cycle, and tend to be levered bets on gold. However, there are some exceptions. Owns a small amount of Franco Nevada (FNV-T) which is a very good model. They don’t take the same risks of cost inflation that actual producers do. Sentiment on gold has really turned and at the point where a lot of stocks are baking a lot more of this in.

Has been in the penalty box due to operating difficulties. They have a good balance sheet and the higher gold price could hide sins. He thinks it will do well in a rising gold price environment.

Period of seasonal strength for gold miners has just begun at the end of July. That runs all the way through to about the end of September. We are starting to see the gold mining industry wanting to bounce from here. This broke down in what is typically a weak month of June-July. Then it hit the period of seasonal strength and it popped. He would expect resistance at $2.60. Perhaps take profits there if you want to reduce your risks, but he has seasonal tendencies continuing all the way through to September.

This stock has been weaker than average for the gold sector. Historically the best time to own this has been from around the latter part of July right through until the beginning of October. Currently watch for signs that the stock is bottoming, and we don’t have that yet. It is still in a downward trend, underperforming the market and well below its 20 day moving average. He is guessing that the seasonal trend is going to happen within the next month.

The chart indicates that it is trying to bottom, which is encouraging. There are slight pauses of relative strength which is also encouraging. Below its 20 day moving average. The technicals are getting lined up, but the trend is still on the downside. It is probably getting lined up for a seasonal trade starting in July.

Gold is a really interesting idea right now. From a risk/reward perspective, he thinks it is fantastic. It has been beaten down, but there are early signs of consolidation. The pretty big November low is positive. The action following that really shook the investors and probably deflated a lot of the hopes of gold investors. From November on, there is a little nascent trend starting. He thinks the upside is really strong going forward. If he is wrong, the risk/reward is pretty good.