"This is a great time to be buying in the gold and silver area," says resources expert Adrian Day. In his Global Analyst newsletter, the money manager and advisor explains, "We are focusing on quality companies in the junior resource sector, following what is traditionally the weak summer period for gold prices."
One favorite of the advisor is Gold Fields (NYSE: GFI), which he notes has a strong balance sheet and long-term reserves. He points out that the stock has been held down as would-be acquirer Harmony sells shares.
In addition, he states, "Goldcorp (NYSE: GG) is one of the strong balance sheets, highest growth outlook, more favorable country risk profiles among the senior miners."
Among silver companies, he says, "Silver Standard Resources (NASDAQ: SSRI) has a strong balance sheet (even allowing for a problem in some commercial paper it holds) of C$242 million, including bullion.
He continues, "The company has top management and the largest silver resource of any public company. In addition, the firm is transitioning to a producer, with its first mine, Pirquitas, under construction, while San Luis and Pitarrilla are both growing."
Adrian Day is also bullish on Silver Wheaton (NYSE: SLW), which he says has a low-risk business plan and strong growth profile. He explains, "The stock is down because of a weak quarter due to a shortfall at one mine which is expected to reverse in the second half."
Meanwhile, he adds, "Silver Wheaton has acquired more silver streams, including notably from Pensasquito, and anticipates two to three new deals a year going forward."
Are the stocks of all these companies at their lows? Day suggests, "Perhaps not ... probably not." But, he counters, "They are quality companies at good general price levels. If you already own these stocks, you can buy more. If you don't, you can now be looking to buy shares."
Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.
[Photo tanakawho]











Reader Comments (Page 1 of 1)
9-06-2007 @ 11:16AM
Michael Schneider said...
Gold is very interesting here esp. if the fed cuts rates. Goldfields (GFI) was among stocks listed by analyst John Hathaway on CNBC this morning. His brief commetns and stock picks are available free for those interested at http://www.Barreloworld.com.
9-06-2007 @ 3:04PM
Karl Sven Wilken said...
excellent