Don Vialoux
Yamana Gold Inc.
YRI-T
WATCH
Dec 31, 2014
Gold companies are looking for opportunities to lower the costs and stay economic. Lower gold prices have made a difficult for them. This has been hammered during the past year and is finally showing signs of bottoming and starting to form a nice little base pattern. If it moves above its trading range, then it is off to the races. Gold has 2 periods of seasonal strength, July through to October and the middle of December through to the middle of March. Watch for gold and gold stocks to move significantly higher on a seasonal basis.
For some reason, they keep missing. So he's stayed away. Not fine-tuned. Target of $6.25, and eventually they'll get there. Other ones have executed much better.
If you buy just YRI you have jurisidictional risk (i.e. a country can change the royalty suddenly). Also YRI has had a pretty good move. Buy GDX instead, an ETF.
YRI is improving dramatically. And it's good they're returning capital to shareholders. He prefers higher-grade companies like FNV and Barrick. But if gold rapidly rises, YRI would outperform those bigger caps.
He does not like gold or gold stocks. If there is a reset to get us out of this mess, these companies will have a hard time because their expenses are going to go up as well due to inflation. He does not see gold stocks seriously outperforming here.
We are quite far away for the seasonally period for Gold. If you find gold increasing and the stocks increasing at the same time, the you can see YRI-T do very well. If the market sentiment is weak and gold is performing well, he would look to larger cap companies.
Good company. A buy, $8 target. If companies are doing well at these levels, they'll do really well as the commodity price goes up. You just have to wait. Keep buying into dips to keep your weighting at 5%.
With market volatility, gold stocks tend to be more volatile than the overall market and than gold itself. In this choppy period, he'd take it off the table right now. Deal completion risk and market volatility risk.
Uptrend occurring right now. Smaller than larger players in sector. Company trying to breakout. Hesitant to buy. Give stock a chance to prove it can breakout.
Gold companies are looking for opportunities to lower the costs and stay economic. Lower gold prices have made a difficult for them. This has been hammered during the past year and is finally showing signs of bottoming and starting to form a nice little base pattern. If it moves above its trading range, then it is off to the races. Gold has 2 periods of seasonal strength, July through to October and the middle of December through to the middle of March. Watch for gold and gold stocks to move significantly higher on a seasonal basis.