Paul Harris, CFAGillette CoGBUY ON WEAKNESSJun 30, 2005
New management is better placed to take the company to new levels. Company is now a little more diversified from gold. Fairly valued at these levels. Wait for a hiccup along the way. Prefers Barrick (ABX-T) which is cheaper.
(A Top Pick July 3/08. Down 13.23%.) Was stopped out at a 14.3% decline. Not a gold bug but thinks in the fall gold will break out above $1000. Gold stocks are lagging so the ones that will follow the price of gold will be the big caps. (See Top Picks.)
(Top Pick Jul 23/08 Down 7.75%) Still holding. A leader in gold industry. It’s here to provide some protection. Still making good money. Protecting against US continuing to print money.
Doesn't think the market really appreciates what a great deal this company got when Barrick (ABX-T) spun their Red Lake assets. They are now tops in that patch. Has shown some pretty good earnings growth.
Most investors should own 5/10% of their portfolio in gold at this time. This has not been one of the better performers. New management is coming in. Would prefer Placer, Newmont or even Barrick.
A defensive holding. Likes consumer staples at this time. High quality company, and predictable growth. Trades at about 25 X earnings. A little pricey, but worth it because of predictability.