Keith RichardsAlamos Gold IncAGI.TOCOMMENTDec 18, 2015
The problem is that it is making lower highs and lower lows. The other possible problem with the stock is that the underlying commodity, gold, is declining. Gold itself has broken technical support. He has a problem with gold itself and most of the gold producers. What you want to see is confirmation that it is making a base and breaking of the trend line. At this point, this is still in a downtrend.
Likes both, but slightly prefers FVI, since it's so deeply out of favour. He's less conscious of political risk than most investors. Both are well run. Both have successfully brought Tier 2 deposits into production on time and on budget with efficient operations.
Likes both. Down from peak. Lots of exploration work, massively increased high-grade gold reserves. Finding new gold deposits around the globe has been very difficult. So when they double their reserves at home, in Canada, that's even better. Stick with it.
Strong production growth. Hasn't seen as much takeover activity in the Mexican market where this one is. Likes the cashflow generation. He took profits.
May be starting to break out of its long sideways trend. Doing lots of exploration within current deposits, has expanded its high quality gold reserves. 1x book value. Yield is 1.13%. (Analysts’ price target is $13.38)
Solid. 65% of its value is now in Canada. Its acquisition has borne fruit beyond expectations, and this will help maintain its attractive overall cost structure. Closer to the top tier of its peer group. Due to weak sentiment, he's not been adding gold.
(A Top Pick Aug 25/21, Up 1%) He continues to hold. It is superb and has much better reserves than Yamana which was taken out. It is cheap and has good exploration potential as well as good development of quality reserves. Inflation will move gold.
AGI vs. ABX Agrees that gold is going higher. Doesn't own ABX or AGI. If you believe gold is going higher, do you want the high torque name, or the big diversified large cap? The answer depends on your conviction in the direction of gold. His firm is conservative, so they'd pick ABX. ABX has a better management team and asset base and is more diversified. AGI is more concentrated in 3-4 mines, so the risk is higher.
(A Top Pick Nov 18/20, Down 9%) Stock is very cheap. Expanding high-quality reserves. Trading around book value. Might be attractive to an acquirer. Hang in.
(A Top Pick Nov 18/20, Down 16%) He's definitely keep buying it. The company has been exploring its surrounding area and replacing its high-grade reserves. It has nice upside potential based on its current earnings forecast. The kicker may be it being a take-out by a bigger gold company.
It has increased its high-quality reserves a lot. It is a takeover candidate. This could rise a lot if gold prices climb. (Analysts’ price target is $13.99)
(A Top Pick Jul 17/20, Down 25%) He likes it because it is purely Canadian. It is cheap and currently has traded down to its book value. It has a superb balance sheet. He wonders why one of the larger ones does not take them out.
It has a superb balance sheet. They don’t have a lot of garbage on their balance sheet. They succeeded in expanding their high quality gold reserves. What's not to like. They are at book value. (Analysts’ price target is $14.82)
The problem is that it is making lower highs and lower lows. The other possible problem with the stock is that the underlying commodity, gold, is declining. Gold itself has broken technical support. He has a problem with gold itself and most of the gold producers. What you want to see is confirmation that it is making a base and breaking of the trend line. At this point, this is still in a downtrend.