Bruce Campbell (2)
Yamana Gold Inc.
YRI-T
COMMENT
Jul 27, 2016
Ranks very well in his process, both from a fundamental and from a technical standpoint. As to whether there is more room left to go, a large part depends on gold and where the price goes. Thinks we are probably entering a new bull market for gold, but it is hard to stay with because the rallies in the declines can be so sharp. In a case like this, you really have to trade around it. Have a core position, and then add or remove as the stock runs up.
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.
Ranks very well in his process, both from a fundamental and from a technical standpoint. As to whether there is more room left to go, a large part depends on gold and where the price goes. Thinks we are probably entering a new bull market for gold, but it is hard to stay with because the rallies in the declines can be so sharp. In a case like this, you really have to trade around it. Have a core position, and then add or remove as the stock runs up.