Barrick Gold (ABX) is the world's largest gold miner with a $50 billion market value.
It has a forward P/E of 8.3, which fits in the Auer fund's criteria allowing it to buy a gold stock "for the first time in 25 years."Auer said the company is unhedged, that is it hasn't locked in a floor price bet, so it's taking gold out of the ground for about $428 an ounce and the current market price is about $1,745 an ounce, which gives it a huge profit margin. Barrick executives recently said at a conference that each $100 increase in gold prices adds $500 million in earnings to their company's profit potential and that is not being recognized by the market. Its shares are down 2.8% this year, but up 28% annually over three years.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV