Eldorado Gold (ELD-T)

Doesn't own either. Kinross has historical issues trying to right the ship, doing better recently. 

For ELD, a very high 60% of NAV is exposed to development risk. Recent mine is financed and built, but there's still execution risk. Trades at a discount on geopolitical risk too.

His preference is AEM, with one of the best teams and one of the best executions he's seen over the last decade.

Sell Telus and buy Eldorado Gold? They're totally different companies, different stories. Can't compare them. Eldorado's valuation is extended, so he'd look elsewhere. Stick with telecoms, which pay decent income and offer decent growth. People are using more bandwidth. Infrastructure and telcom stocks have been overlooked as investors have chased the tech high-flyers.

Not shorting any gold right now. Stock's run well ahead of the group, so he's not as enamoured with this name. He'd look at B2Gold. For domestic, he'd take Detour Gold. Gold is the default winner in the face of US debt putting pressure on the dollar, and will probably be higher in 6 months.

He just raised his target from $1.40 to $1.45. He likes plays with good reserves in the ground and generating cash flow. If you own it, hold it, don't sell it. This sector has taken a beating. Consider averaging down, because there will be a rebound in precious metals. Be patient with the metals.