Tuesday, April 11, 2006

Metals Look Good

The fundamentals of gold and silver stocks on a longer term basis look good. Some of my favorites are FCX, GG, BGO, NXG, & SLW. I would look to add to my position if there is any weakness tomorrow. A lot of the earnings expectations are too low in my opinion. Precious metal stocks are underowned by most mutual funds. A lot like how the energy stocks were underowned by many of the mutual funds in 2004 and early 2005. I think GG, FCX, and NEM will become popular with funds because of their large market caps. Newmont (NEM) reminds me a lot of Exxon (XOM) in the gold sector. And SLW reminds me alot of Chesapeake Energy (CHK).

Note: I am long BGO & SLW


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