Opinions
James West
Newstrike Capital
NES-X
BUY
Nov 23, 2011
Stock price when the opinion was issued
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One of the few gold exploration companies that he likes. Operates in the Guaro (?) gold belt in Mexico and they own one of the largest land packages in this area. Goldcorp (G-T) has been operating there for a very long time. This is a very cheap way to play this trend. Strong balance sheet. Have low cash costs and high grades.
(Top Pick Mar 30/13, Down 35.92%) He hasn’t suffered because he shorted in the gold space. Junior gold stocks have fallen out of bed. But positive things have happened. They released a resource which shows low cost material. Have ample cash on their balance sheet to withstand the volatility in the space. 24 months of runway. Would be a nice tuck-in acquisition.
(A Top Pick March 20/13. Down 53.8%.) When he turned negative on the gold space, he put a hedge against this by Shorting Market Vectors Jr Gold miners (GDXJ-N). This has all the attributes of why you want to own a gold exploration company. It is in Mexico and has a great resource space and he feels it is ripe for consolidation.
(A Top Pick March 20/13. Down 34.48%.) Negative return is not all that surprising given what gold exploration companies have gone through. Great asset base in Mexico. Have 3,000,000 ounces plus in a deposit. Highly economical. Shored up their balance sheet a while back and continued to be conservative with their spending. Will have enough money to get them through at least this year.