Three Gold Miners to Watch

by Dr. Declan Fallon

Gold bugs have seen a steady improvement in the commodity pricing with the recent price cross of its 50-day MA and the subsequent cross of this moving average by the 20-day MA. However, the best form has emerged from some of the gold mining stocks. Here are three worth watching; two of which have YourCall information.

The first to emerge from a 9-month cup-and-handle pattern is Gold Fields Ltd (GFI). The break beyond $12.63 hasn't cleared all trouble given reaction lows from early 2008 at $14.00 will continue to act as supply. The potential 1-year target is last October's highs at $18.22. I have a YourCall for a push to $18.19 with a stop at $11.69. [click to enlarge images]


The second stock, Golden Star Resources (GSS) has advanced almost 100% from April lows so is perhaps in need of a consolidation period before pushing on. The Cup-and-Handle may make more sense as a "W" bottom but the prognosis going forward is the same. I have a loose YourCall entered with a Target of $4.25 but a broad stop at $1.69. It will be a slow burner.


The final stock of the three, Kinross Gold Corp (KGC) hasn't broken from its base and is still penned in by resistance at $19.49. I have not entered a YourCall on this but an Alert for a Price Cross of $19.49 should suffice.


Keep an eye on all three...

Comments

[przem23:]

I would buy Yamana over Kinross. Price to book is 1.1 vs 2.4, +48% vs -40% profit margins, +175% vs -350% income growth, and half the amount of debt-to-capital for Yamana.

For penny stocks, I would buy Hawthorne Gold (HGC.V) over Golden Star because Hawthorne is actually going into production later this year with a high grade pure gold play, and has seasoned management with a successful track record.

proactiveinvestors.com...

Disclosure: entered HGC.V position at 0.27

May 21 12:03 PM

[Liambert:]

Regarding GSS,

Obama is heading to Ghana July 10-11 to highlight their democracy and stability in West africa. This trip should be a big boost for any potential GSS investors that haved shied away due to the preceived Geo-political risk of a West African Miner.


-Liambert

May 21 12:24 PM

[Vuke:]

I went Yamana as well and like the Hawthorne story. Anybody looking for inexpensive bets on gold should also consider GG.V and RDS.V ($0.06 and $0.10). Each has a mill and an historical resource and looking for JV partners or financing to bring to production. A return to $1,000 gold and junior financing should see these things really lift. Yep, I do own them, among others.



On May 21 12:03 PM User 370788 wrote:

> I would buy Yamana over Kinross. Price to book is 1.1 vs 2.4, +48%
> vs -40% profit margins, +175% vs -350% income growth, and half the
> amount of debt-to-capital for Yamana.
>
> For penny stocks, I would buy Hawthorne Gold (seekingalpha.com/symbo...)
> over Golden Star because Hawthorne is actually going into production
> later this year with a high grade pure gold play, and has seasoned
> management with a successful track record.
>
> proactiveinvestors.com...
>
>
> Disclosure: entered HGC.V position at 0.27

May 21 02:54 PM

[nmelendez:]

personally, i'll stick with Northgate. Great price and producing. This is a 8 dollar stock at 2. And that's at these levels. Also own Yamana. NXG is a Yamana in the making. No debt, plenty of agreements with small miners and priced in Canadian and Aussies.

May 21 07:54 PM

[Alan Young:]

I like NXG's chances as well.
The hottest stock market in the world this year is Peru, so BVN is a great way to play geography.
There are many, many cup-with-handle patterns in the gold mining sector; there's no need to choose just one or two.

May 21 11:15 PM

[DONE_SONZ:]

AEM, AUY, EGO

May 22 07:38 AM