Sandstorm Gold Ltd. (SSL.TO)

Everything is looking up. Continue to meet their targets in terms of new streaming deals the same as they had with Colossus (CSI-T). Has outperformed the sector over the last 2 years by a very wide margin. Thinks the underlying producers have now priced in the operating risks for the most part so he is warming up on the underlying producers such as Argonaut (AR-T). (See Top Picks.)

Good valuation. Highly skilled management. Foremost junior gold streaming company in Canada and he thinks it’s just going to carry on up. There has been a nice correction to take advantage of if you don’t own it. One of his favourites in the gold sector.

Royalty stream company. Investors have exposure to gold and a fairly good visibility to their cost structure, and therefore profitability of the company.

Most gold stocks sold off. He is turning bullish on the US dollar. If you own a gold stock, reduce into the rallies. We are still in an uptrend. It has not been violated.

Sept and Oct gold producers were strongest in the market. Given the shift over the last couple of weeks, the higher beta sectors have been the playground of the hedge funds. He pulled in his horns on the golds and sold this one over the last couple of days. Long-only investors are not really engaged.

Gold royalty company. Finally got hit because it started to trade at twice the net asset value.

Just did a streaming deal with Colossus Minerals (CSI-T) for gold and platinum. Has been a great performer. All the royalty gold and streaming companies have done exceptionally well in this market because they don’t have the increased CapX. A growing company.

All the moving averages are in the right place. Some of the indicators are low so we know that it has not got into an overbought level. There’s no good reason not to buy but he’d rather wait for a pullback, but you may not get a pullback. You could use a stop loss of $13 and the next one would be $11.

Royalty companies are great. Believes this one has more thrust than some of the larger ones. Can easily raise money and go higher.

Silver has done very well. Has a much shorter window then gold. Historically gold does much better after the US election. He would wait until after the election on both gold and silver.

Really likes the royalty structure in investing in precious metals. Rarely does a gold company come into production on budget and on time. Just raised $150 million, which gives them liquidity to do additional deals. They’ll grow their share of production from 35,000 ounces this year to about 65,000 by 2014.

Recently closed a deal to raise $150 million. A gold streamer which definitely performs much better than the producers but he prefers the producers as they will have much more leverage going forward. His company doesn't follow this one but some clients own a little bit. Has just got listed on the NYSE, which will be very good for them as there are not that many choices of gold there.