This Day On The Street
Continue to site
ADVERTISEMENT
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

Top 5 Gold Stocks For High Gold Prices

No. 2 -- Randgold Resources (GOLD - Get Report)

Foster: Randgold fits the mold of the company that has grown organically. They've got a great team of geologists that have discovered world-class deposits in West Africa and we just love their growth profile and the fact that they founded it all themselves.

Are you worried about their rising cash costs, which have grown from $400 to almost $700 per ounce?

Foster: Not really ... the Achilles' heel of growth companies is that you have operating risk as they bring new projects into production ... Randgold is going through some growing pains, struggling with costs and operating issues that we think will get ironed out as time goes on.

I've heard from some analysts that Randgold's too expensive, that it trades at 22 times 2011 earnings, that it's too much of a premium. Why is that OK for you to stomach?

Foster: They're not too expensive, first of all, if you give them credit for all of the ounces that we expect them to develop over the next five-10 years. So my guess is that analysts who see them as expensive aren't seeing the growth potential in the company that we are.
5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AEM $29.75 4.64%
ABX $10.85 2.65%
GOLD $67.00 0.68%
GG $16.70 3.21%
IAG $1.96 2.08%

Markets

DOW 17,683.58 -46.53 -0.26%
S&P 500 2,068.76 -8.02 -0.39%
NASDAQ 4,991.94 -17.2740 -0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs