Newmont Mining (US) (NEM)

(Top Pick Oct 26/15, Up 91.64%) For three years in a row they killed gold stocks. It worked out fabulously well. It went up to EBV +3, where they trimmed their position. There is a 13% downside to his model price.

(A Top Pick Nov 25/14. Up 10.1%.) *Short* He hates gold in general. Gold prices in US$ does not do well.

The model price is 24% lower than it is today. It is a stock in conflict t. The analysts and the street are negative. Put it away. Day to day you can`t look at it.

*Short* Hates gold companies and gold prices. We are in for another decade or more of disappointment. This is one of the few material names in the US, so it is widely held by generalists, but what it doesn’t have going for it is growth. Has had no growth for years. Huge issues with debt at $6.8 billion. It needs to spend roughly $2.6 billion over the next year or so, just to maintain production. If the Swiss don’t vote for gold to be backed by the central bank reserve, then gold will be under pressure and gold stocks will be very, very weak. Yield of 0.51%.

How much worse can it get. It will eventually go up with gold. He is encouraged by what is going on with gold. Prefers one of his top picks for a gold pick.

Model prices $28.18. Gold stocks are very hard to predict. As the price of the SPDR Gold ETF (GLD-N) goes down, the pressure on gold stocks is enormous.

It is possible that gold could go down even further. If you are considering this, consider doing a partial Buy now followed by more in the months to come. (See Top Picks.)

(Top Pick Sep 29/11, Down 7.76%) Still a strong buy, now that dividends are linked to gold price. Reasonable yield and direct link to underlying commodity.