Adrian Day: Top Buys in Gold and Silver
Source: bloggingstocks.com (9/6/07)
"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 has a strong balance sheet (even allowing for a problem in some commercial paper it holds) of C$242 million, including bullion.
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."