San Gold Corporation (SGR.H.V)

Chart shows a long downtrend from 2010. There is no driver right now. If you own, don’t average down. He would like to see it break out of this trend before you commit any money to it.

(Market Call Minute) Some bad news came out today. Difficult stock.

Was Short this because they kept missing production estimates and other targets. Ultimately covered his Short at around the $0.90-$1 range. There are a lot of better places to go in gold. (See Top Picks.)

(Market Call Minute.) On a value basis, it is very cheap but is probably going to hold production flat this year.

In a district that will be mined for the next 20 years. Has great potential. One problem they have suffered through the last several years has been that they have been building out the mine and perpetually missed their guidance in the number of ounces and cash costs. New CEO seems to be doing a good job of executing and bringing the guidance in line to a reasonable level where expectations are hopefully met. Last quarter they just came out with their highest quarterly production, which is a good sign. Thinks it will have a strong Q4 but in this market you have to continually show the market that you can continually create cash flow and not have to do lots of development work.

Looking at his tables, gold producers on a weekly basis are the #1 place to be. This one is making new lows. Has a floor at around $0.75. Trying to right itself. Probably better places to put your money in gold.

2 years ago they were looking to expand their mine as well as develop the Red Lake project that they had. New management team and the story is progressing fairly well and are producing gold. Looks like it will be able to expand their gold mine. Very undervalued. On her radar right now.