"The technical picture for gold is getting better by the day," says Eric Roseman. In his Commodity Trend Alert, he notes, "The last 16 months have been painfully boring for gold bugs. But every asset class has its day, and right now it's time for gold to shine once again."
The advisor considers Eldorado Gold (ASE: EGO) a speculative favorite. He explains, "Eldorado Gold is a $1.7 billion dollar company with operations in Brazil, China and Turkey. Management is strong, and despite a recent political spat with the Turkish government in July, earnings are booming."
He continues, "The stock is a perfect addition to our mining portfolio because it earns a net profit, has tangible reserves and has boosted its free cash flow."
In August, he observes, EGO reported strong Q2 results with net income rising to a record $26.7 million dollars, or $0.08 per share compared to $0.00 a year earlier. He states, "During the second quarter, Eldorado sold 112,702 ounces at an average price of $664 an ounce – one heck of a healthy margin."
Another new buy to his portfolio is Northgate Minerals (ASE: NXG). He notes, " The stock is trading just above its low and ripe for the plucking. Northgate is a rocket, mines throughout the Americas and has been on my radar for months. Now is the time to kick into action and buy."
Another leading resources expert, Curtis Hesler, has been forecasting a decline in gold into seasonal lows in August, a call that has so far proven accurate. The editor of The Professional Timing Service has recently added a new position to this model portfolio, Endeavor Silver (ASE: EXK).
He observes, "They expect to produce 2.8 million ounces of silver and 7,500 ounces of gold in 2007. Their principal activities are in Mexico, with several interesting development projects in the works." The advisor concludes, "This is a fine speculation on a junior silver producer -- something that is not all that easy to find."
Each day, Steven Halpern's TheStockAdvisors.com features the latest stock picks and investment ideas from the nation's leading financial newsletter advisors.
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