Alamos Gold Inc (AGI.TO)

(Top Pick May 14’13, Down 27.69%) Sitting on a pile of cash. They predicted less free cash flow. Two other opportunities don’t look as good as previously. He is willing to hold, but is not buying more.

His company has this as a Sector Perform but he doesn’t follow it.

Increased his holdings at the beginning of this year. He likes that in the last 4-5 years, they’ve put a huge amount of cash on the balance sheet. This was from operations so they have been one of the most profitable mines that has been built in the past decade. Nice dividend. Turkey should be their next leg of growth.

Gold producer in Mexico. Efficient operator. Mexico is a good jurisdiction. It is tied to the price of gold, which will be challenged short term. Mid to long term it could be up 10% in a year or two.

Lots of cash on the books, small dividend and a low cash cost producer. Even when the gold price came down they were making money. Built up cash over the last couple of years. Acquired assets in Turkey. Putting this into production over the next couple of years.

(Market Call Minute) Likes the sector but not his favourite stock.

One of the more defensive ways to play because all in costs are probably $800. Low costs, growth perspective with Turkey mine, so they can withstand this volatility on the gold price. He bought a month ago. He bought it on weakness. You might want to wait through the summer for some weakness.

Best in space, operating costs are cheaper than other companies, free cash flow. Estimated P/E Ratio is 18.85. Dividend is $.10 and yield is 1.38 %. It is one of the lowest all-in-costs in this space and has a great defensive name. May see $18-19 in next year.

They have done a good job of building cash on the balance sheet. Small dividend.

Has been adding to his position recently. Doing a great job of creating cash flow and putting cash on the balance sheet. Just made a hostile bid for Aurizon Mines (ARZ-T) at a 40% premium, which is very significant. Wouldn’t be surprised to see some other bidders come out. Great entry point.