New Gold Inc. (NGD.TO)

If gold recovers, which it should over time, especially if the US$ comes down a bit, there is lots of value in the gold market. The stocks are way off. Have had a little recovery, but not that much. If you think gold is flat or down, don’t be in a rush. He would be hesitant.

Very few companies that are building real projects, so it is now up to them to do it on time and on budget. Project is in BC and then they are coming back to Ontario. With the Cdn$ down, the market should support them. Because of the nature of building things and timing capital, there is always this sweet spot that you never quite know exactly where it is. 12 months before they actually start producing is probably the best time to buy.

Have access to high-quality deals, because of the quality of the board and management team. He is struggling to see the new leg of growth. Their Blackwater or Rainy River projects probably made more sense in a higher gold price environment. Rainy River probably has a better chance of eventually coming into a play that they can actually finance. Wouldn’t be surprised if there might be some acquisitions to fill the gap for 2016, and use some of that cost of capital they have, to make that acquisition.

A midsize gold producer, mostly focused around the Americas. Production is around 400,000 ounces a year. Current production is not so important; it is really expectations of future production. You really have to get comfortable with development assets because they have a suite of very large development assets in Canada. He is not looking for companies that have to plow a lot of cash and capital into the ground to keep production growing and generate free cash flow. This company is caught up in that position, where most of their cash flow right now is going to be reinvested to bring on new assets. Great for adding value long-term, but for him, he is looking for free cash flow and there is not a lot. Fairly valued now. Management team is probably one of the best in the business.

Technically this is in an upward trend, outperforming the Canadian market and very close to breaking out which would be a confirmation of an upward trend. Also, trading above its 20 day moving average. However, there is some resistance at around $8.30 which doesn’t create too much concern. Historically, the stock doesn’t do very well from February to July of each year.

If you bought it just recently then you will need to be a bit patient. He tries to buy after a breakout, which it hasn't done yet. If you have it hold it for now.

This is on his Stock Watch list. Very much based on where the price of gold is. Very interesting and a good contrarian play but he feels there are others in the gold sector that could be of greater interest. (See Top Picks.)

Great management team. Just like every gold stock out there, the price has been annihilated. Valuations are at very depressed levels. They’re having a ramp up at their new Apton mine and are doing very well. Also, acquired Rainy River this year. Continues to like this. Very cheap.

Cheap, but she would hold off buying. The knocks in previous years have always been about growth projects so they went in and bought Blackwater and just recently, Rainy River. Both projects economics are not very attractive at $1300 gold. Because of a lack of growth profile, she would hold off. She is on the sidelines and wants to watch how the company executes.

This year it is forming a nice little base pattern. The trend is down, it is under performing the TSX and it is below its 20 day moving average, so all three indicators are negative. Wait to buy until the price of gold breaks around the middle of July.

It is stuck in the near term. Black Water is about 3 years out. Management team has distinguished themselves in the past.

We had a really nice recovery on this stock, then a faltering and now it is trying to go again, but the time that it is stalling is negative for it. The volume has disappeared.

Have been acquiring a bunch of mines globally. Have operations both in North America and different parts of the world. Feels the intermediate gold space is the place to be, given that the large companies are going to be looking downstream to buy up some of these Junior names.

Strong board and management. Has a number of mines. On track to goal of million oz producer. One of the few that has met expectations and targets and is on target for 2012.

(Market Call Minute) Basing nicely.