Yamana Gold Inc. (YRI.TO)

(Market Call Minute.) His overall comment on gold has been positive, and he sees another leg coming. This has a 4.5% free cash flow generation on existing earnings, and he thinks the stock and the group are moving higher.

She likes this. They are cutting costs and have done a good job of sorting their costs out and improving their operations. Today was a great day to add to your position. Seasonality should be good, as next month is supposed to be good for gold. If you feel that the stock has bottomed, that would be a good time to add to your position.

Gold follows a very seasonal pattern. Typically, you get a pickup in interest at the end of the summer and into the 4^th quarter. Thinks Brexit has impacted the seasonality that we are going to see as gold would have been weaker already. This is a very liquid instrument, so a lot of people are starting to favour it again.

Thinks the future is generally pretty positive for gold. This may be under pressure because of its record of acquisitions and growth through acquisitions, which is less favourable than organic growth. Have also had a couple of years of production misses/cost overages. Doesn’t think there is anything hugely wrong and the sector overall is going to do well. (See Top Picks.)

(Market Call Minute.) All the gold stocks are obviously a play on the commodity. They all have extremely strong price momentum. The Fed going on Hold for longer, will take these gold stocks higher. This is not a space that he plays in at all, and valuation is still quite poor on this stock.

(Market Call Minute.) Not his favourite. He would put money elsewhere.

One of the few that you can really see with identifiable growth profiles. If you own this, it is highly volatile. Consider using Puts and Calls around a core position, but do it in conjunction with your financial advisor.

Seasonality on gold and gold stocks is generally neutral at this time of year. This year it has been different. First of all, gold has developed a positive technical pattern. It has an upward trend, is outperforming the market and has positive momentum. Even more positive are the gold stocks, like this one. This looks very attractive, gaining momentum.

(Market Call Minute.) Even though they have some growth and production, it is mostly in South America, and jurisdictions that are trying to get bigger pieces of the pie. They have not done as well on the production growth.

Has a little of this, but has never really owned the company because of management. They have executed badly over time. There are others that will have way, way better upside. He wouldn’t recommend this.

He is keen on the long term US base price of gold. It is advantageous if you are a miner in Canada. They have a slight improvement to their loss estimate for earnings last year. If gold moves up in price you will see an increase in expectations. You might consider an ETF for diversification, however.

This is one gold that he doesn’t own too much of. He would rather own others which have way more leverage. For some reason, this company just can’t seem to get the team.

If gold recovers, which it should over time, especially if the US$ comes down a bit, there is lots of value in the gold market. The stocks are way off. Have had a little recovery, but not that much. If you think gold is flat or down, don’t be in a rush. He would be hesitant.

Gold had a very strong day today, which is really confusing considering that we have the US$ generally going higher, and that there was a rate rise coming. Typically not a good time for gold. His expectation is that gold will continue to go down, or at least stay flat. This company has disappointed the street in meeting its own forecasts on a couple of occasions. It also has had some controversial executive payments. He would be avoiding the space.

This is under his last EBV line. That means there is no more structural line for the stock price to have support/resistance. This company needs to take a write off. The stated value of the balance sheet the company is putting out is too high. It is far too early yet for this company.