Raymond James Analysts: Be Selective When Choosing Gold Stocks
Source: Seeking Alpha (6/10/08)
Raymond James Analysts Bart Jaworski and Brad Humphrey told clients that investors should focus on companies with above average growth profiles, strong management teams and quality assets.
In a note to clients they said:
In the most recent bull market there has been significant disparity in the performance of gold and silver stocks versus bullion prices, highlighting that investors must select precious metal equities cautiously.
They also initiated coverage on nine new precious metal companies.
Mr. Jaworski and Mr. Humphrey told clients that investors should focus on companies with above average growth profiles, strong management teams and quality assets. They added that the typically weak summer months offer a great opportunity to add quality positions, noting their top picks include Eldorado Gold Corp. (EGO), Great Basin Gold Ltd. (GBN), Lakeshore Gold Corp. (LSGGF.PK) and Pan American Silver Corp. (PAAS).
The two analysts also said the outlook for gold and silver continues to look good. They predict an average gold price of C$940 per ounce in 2008, with average prices in the second half hitting C$980 per ounce...