This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Make Money While Gold Shines

Stocks in this article: PHYS GG ABX KGC GLD

NEW YORK ( TheStreet) --As the euphoria over Gold continues, so do the number of investment opportunities.

Sprott Asset Management announced on Wednesday that it had raised $400 million from the initial public offering of Sprott Physical Gold Trust (PHYS) at US$10 per unit.

Sprott Physical Gold Trust (Canada) and Sprott Physical Gold Trust began trading last Friday on the Toronto Stock Exchange and NYSE Arca, respectively.

Analysts expect that the recent emphatic run in gold prices is far from over and continue to hold a bullish view on the price of gold, attributing the optimism to various factors including a weak U.S. dollar, increasing U.S. deficit, and rising global gold demand.

Recent economic developments have boosted investor sentiment for metals, particularly gold. The ADP unemployment report pegged private sector job losses at 20,000 during February, down from 60,000 in the previous month. Greece announced an austerity plan on Wednesday, pledging to implement cost saving measures of nearly 4.8 billion euros ($6.5 billion).

Stock picks

Most gold miners are either ramping up production or taking control of other mines, suggesting a continuing bull-run.

Goldcorp (GG) , whose stock price touched a low of $27.52 in April 2009, zoomed to $42 in November 2009 and is currently trading at $40. Going forward, Goldcorp expects to increase production by roughly 10% to approximately 2.6 million ounces during 2010, up from 2.40 million in 2009. The stock has 12 "buy" recommendations, 7 "hold" ratings, and 1 "sell", according to TheStreet's analyst ratings guide.

Barrick Gold (ABX) , the largest gold miner in the world, acquired a 70% interest in the El Morro project from Xstrata Plc for $465 million in cash. According to company reports, Xstrata's total measured and indicated gold resources stand at approximately 8.3 million ounces.

The company forecasts production to increase to 7.6-8.0 million ounces during 2010, up from 7.4 million ounces last year. It expects to lower costs by approximately 10% as well. According to analysts polled by Bloomberg, revenues are estimated at $9.9 billion during 2010 compared to $8.1 billion in 2009, while earnings are estimated to rebound to $2.39 per share as opposed to a loss of $4.73 posted in 2009. Kinross Gold (KGC) is another company to have acquired a mining stake in recent times. In January 2010, Kinross spent $368 million to acquire the high-grade Dvoinoye deposit and the Vodorazdelnaya property near Kupol mine with gold reserves of approximately 1.6 million ounces.

As of December 31, 2009, the company's gold reserves stood at 51 million ounces, up by 5.4 million ounces from 45.6 million ounces a year earlier. The stock has 11 "buy" recommendations, 8 "holds," and 1 "sell" rating, according to TheStreet's analyst ratings guide.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,912.56 +107.76 0.61%
S&P 500 2,074.10 +3.45 0.17%
NASDAQ 4,776.0120 +10.6320 0.22%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs