Barrick Gold (ABX.TO)

The announced merger is a signal of further consolidation yet to come in the sector. Gold’s relationship to economic turmoil may be weakening and he wonders if capital would flow back to miners in the event of crisis. He would prefer to hold an ETF for gold instead.

Seen a downtrend since mid-2016, breaking old 2016 support. He doesn't see incoming support, Not good.

Gold didn't kick in in late July, defying seasonality (the opposite movement to the US dollar). Gold will depend on
where the USD goes. He wants the current low to hold. Until there's clarity with US-China tensions, there won't be clarity about the USD and gold.

He would prefer to see an investor buy into a diversified portfolio for precious metals. Gold is heading into a cycle bull period and he would suggest the XGD-T ETF.

If you need a gold, AEM-T has been a better executer. He would prefer owning gold outright if you want exposure to gold. Don’t bet on the companies.

It is cheap. If gold ever gets going it will have a run. If the US ever gets into recession, the market will love gold. (Analysts’ target: $19.92).

He's overweight gold. Barrick's costs have been high and they carry outrageous debt, which they have cleaned up in past years. This stock has done nothing for a decade, and is far down from its peaks. There's no production growth. Look at a mid-size company instead. Barrick will underperform the sector. Effect of cryotocurrency investment taking away from gold investment? He doesn't know, but he doesn't belive in and wouldn't buy any cryptos.

The major gold companies used to focus on pure volume. No longer. They have shrunk their asset base and focused 70% of their core to generate free cash flow. The core will take them forward. Not just Barrick, but the reserves of many majors have been going down. Today, paying down the debt and generating cash flow are their priorities.

(A Top Pick Jan. 2/18, Down 12%) Surprised by awful performance, but he would stick with it. Likes the sector. Give it time. When gold hits $1,400 it'll wake investors up.

Cleaned up their balance sheet. Still have a lot of debt though they've reigned it in. ROIC went from -8% to 3% in just two years. They're doing the right things.

Looks very similar to the actual GLD chart on gold. It's turned the corner, and has built a very, very nice base. Believes it has $25 written all over it in a very short time. If we get gold up through $1400, this has plenty of upside. (Analysts' price target is $19.31.)

A big fan of this company, especially at this time. Certainly had some tough time time in the last 2-3 years with a lot of debt, and it still does. But one of his key metric is return on invested capital and it seems it has finally bottomed and it’s starting to recover. It’s not carried away but it’s in the right direction and doesn’t need to do much to justify the price. He likes it quite a lot.

He likes gold and has been buying it but he buys it through ETFs like ZGD-T. He is playing for a rally where ABX-T gets to $22, 15% upside. He would sell at that point.

When it comes to gold, you have to ask why you are there. You are either playing defence, or as an offense thinking gold is going to go to $2000 an ounce. When talking about companies, you either feel there is something unique about management or they have a competitive advantage. His strategy for clients is to own gold bullion, which is his way of playing defence. Gold acts as a pretty good hedge against geopolitical or mayhem that may be out there. He would sell this and buy gold bullion.