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Today, Charles Oliver, HBSc CFA and Paul Harris, CFA commented about whether LNF.TO, BAC, DH.TO, AAPL, ECA.TO, CSCO, CAT, V, JNJ, TEF, TD.TO, MSFT, DEO, ABX.TO, VALE, VOD, BAM.A.TO, NLY, P.TO, THO.TO, DNA.TO, WPM.TO, DPM.TO, CDE, LSG.TO, SSL.TO, YRI.TO, CSI.TO, SGR.H.V, VTR.TO are stocks to buy or sell.
Have a property in West Africa and have been building up a fairly substantial resource. Came out with an early study on the economics and the numbers were okay but they weren’t barn burners. In this environment, people want good high IRR’s so management is working on finding some higher grade payback zones which will improve the ultimate IRR. Good management. Stock is near rock-bottom valuations. There could be a re-rating of Junior gold stocks in the next year.
In a district that will be mined for the next 20 years. Has great potential. One problem they have suffered through the last several years has been that they have been building out the mine and perpetually missed their guidance in the number of ounces and cash costs. New CEO seems to be doing a good job of executing and bringing the guidance in line to a reasonable level where expectations are hopefully met. Last quarter they just came out with their highest quarterly production, which is a good sign. Thinks it will have a strong Q4 but in this market you have to continually show the market that you can continually create cash flow and not have to do lots of development work.
Hasn’t been much news coming out of this company. As they get into the ore, you are going to get a lot more information. They are going to be able to drill from underground. They’ll also be getting some bulk samples coming out. Over the next 6 months will be a very exciting time for the company. Fully financed. Will be in production next year.
Cheap but it is a “show me” stock. Have a lot of execution over the next year and have a lot of CapX. Doing a fair amount of development work. You have to be patient. Good assets. Have a lot of stuff that they can’t even develop and move forward with because they are somewhat cash constrained. Has great potential going forward.
Silver assets located in Guatemala. CEO is arguably the best mine builder over the last decade. Will hopefully be in production by the end of next year to produce 20,000,000 ounces. He could easily see this company cash flowing $500 million, which means it is trading at about 6X cash flow which is incredibly cheap.
Markets. There had been a really nice rally in the summertime and now you have a pull back. Traditionally, now is when things start to rally into Christmas. Who wins the US election is not as relevant because what really matters is that this issue is out of the way. Thinks the market goes slightly higher from here given that we have had a nice pullback.
Market. The fiscal cliff is a concern for anybody, anywhere and that includes gold. Right now people get scared and sell anything and everything. In the last month or so, people have become more increasingly fearful that Mitt Romney would win and will put in many more measures to reduce the deficit and cut spending. He doesn’t think that whoever gets in power will be the guy who wants to put the country back into recession and he thinks they will again stimulate through quantitative easing, etc. More positive for gold right now. When you look at base metals, the most important thing you should look at is what is going on in China.