Back Up The Truck On Gold Stocks
I feel like Cramer right now. I want to back up the truck on gold stocks. Right here, right now. My top names are Goldcorp (GG) and Freeport McMoran (FCX). My silver play is Silver Wheaton (SLW). All three of these stocks have gotten whacked the past week. Now is the time to buy. I normally would like to buy strength but this is an exception. I am already long Silver Wheaton (SLW). I am going to add either Goldcorp (GG) or Freeport McMoran (FCX) to my portfolio next week. With FCX you get a fat 2.2% dividend at these levels plus copper exposure.
posted by Big Ben at Friday, May 19, 2006
2 Comments:
Hi Ben,
Any reason why you would buy GG even though the results were below the estimates and they were recently downgraded?
Thanks, AJ.
I don't understand why Canaccord Adams downgraded GG when the stock is at $33 not around $40. Makes no sense. They only missed by two cents. If you want a company with more leverage, go with FCX. They are unhedged and have beat estimates the last 4 quarters (See below).
FCX Earnings History
Jun-05 Sep-05 Dec-05 Mar-06
EPS Est 0.87 0.86 1.78 0.88
EPS Actual 0.91 1.00 2.21 1.23
Difference 0.04 0.14 0.43 0.35
Surprise % 4.6% 16.3% 24.2% 39.8%
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