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Friday, May 19, 2006

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.

3 Comments:

Blogger AJ said...

Hi Ben,
Any reason why you would buy GG even though the results were below the estimates and they were recently downgraded?
Thanks, AJ.

5/20/2006 2:25 PM  
Blogger Big Ben said...

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%

5/20/2006 3:01 PM  
Blogger Dollar_Daze said...

Ben,

I've been following a couple of Canadian exploration companies - Adanac Moly Corp (AUA-X) and Canadian Zinc (CZN-T). Both have great potential and are scheduled to go into production soon.

I've also been watching Aur Resources (AUR-T) and Taseko Mining (TKO-T). Both are mainly copper plays with attractive P/E ratios.

I've posted information about these stocks and some of my views on the state of affairs concerning the USD asnd the price of bullion.

I'm a big believer in the Austrian School of Economics and am concerned about the amount of money printing that has been going on in all countries.

Good luck investing!

Dollar_Daze

5/21/2006 12:33 PM  

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