Stockchase Opinions

Kevin Burkett Wheaton Precious Metals WPM-T BUY May 26, 2021

Not keen on gold companies since they are perpetually expensive. Next generation of gold bugs seem to be more interested in crypto. Owning the physical commodity may be the better bet. When gold prices go up, cost goes up so he prefers streamers more than producers. Holding metals in the long term, he prefers WPM due to it having a more narrow basket. FNV owns a lot of different mining royalties that give diversification but also makes it more complicated. Both are fine.
$58.280

Stock price when the opinion was issued

metal mines
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WAIT
WPM vs. FNV He doesn't have a strong preference. You have to wait to see what happens with the commodity. That's your first decision. Once that's done, you look around for valuations. FNV is the go-to stock. WPM has great leverage once they start to torque up. Six of one, half a dozen of the other. Look at valuations and decide which one you think is cheapest.
TOP PICK

World's best precious metals company.
Leverage to mining upside.
Very positive view on high quality asset class.
$69 price target on share price.
Expecting further growth.
Gold is a safe haven against interest rate hikes.
High exposure to silver which is used in EV manufacturing.

PAST TOP PICK
(A Top Pick Mar 10/23, Up 10%)

World's premier precious metals company.
Less risk thank traditional mining companies.
High margins & diversified business.
Expecting gold prices to rise with weak US Dollar & lower interest rates. 

TOP PICK

It should at least return to previous highs around $61, but possibly $70 if gold continues to do well.

(Analysts’ price target is $73.14)
PAST TOP PICK
(A Top Pick Aug 01/23, Up 0.1%)

It's been sideways for a few years, but finding support at current levels. He sees lots of upside. He's been buying in three tranches. But if it doesn't rise, he will sell it. 

BUY

Excellent company for gold exposure. Ranks 9/10 for portfolio. Bullish on gold outlook. Excellent fundamentals. Will continue to buy and hold. 

WEAK BUY

Unsure on whether stock will rise in commodity price increase. Would wait before buying. Overall, is heading in the right direction. Would wait before more strength before buying. 

PARTIAL SELL

From a trade perspective, a bit overbought. He's a trader at heart, and buys into dips. If you're a bull, by all means keep holding. But he took some $$ off the table.

Likes both gold and silver here. Gold and silver equities and exposure to them are very undervalued relative to long-term trends; analysts tell him it's likely going to stay that way for a while. The market just doesn't believe that gold and silver prices are going to remain elevated. 

BUY

Gold is almost like an insurance policy. Good diversifier. Should be a good, long-term hedge. Deposits have become harder to find. 

He prefers the business model of the royalty companies like FNV or WPM. As well, they operate counter-cyclically -- give money when gold prices are low and harvest when prices are high. Always looks expensive, but it's expensive for a reason.

PAST TOP PICK
(A Top Pick Mar 10/23, Up 95%)

Stable, long-term cashflow. Zero debt and huge line of credit give it lots of flexibility to grow. Sees a 6.5% increase in dividend. Big projects are moving forward. Sees 4-5% upside, but she has been trimming to rebalance.