Yamana Gold Inc (AUY)

[SeriousStockStoke]

One More Solid Quarter Is All That's Needed


I have to admit, Yamana shocked the hec out of me with those 1st Quarter numbers: fantastic earnings growth that beat consensus estimates for a change, nice cash flow, and even free cash flow. On top of that they boosted the dividend much sooner than I expected. If Gold & Copper prices remain strong and Yamana can come in with another solid quarter similar to Q1, the whales will be all over AUY.

Short term, the stock could be range-bound for awhile and might even trade down if Gold drops to $800, however I'd be a buyer on any dip, especially if panic selling sets in and people get impatient & fearful. I remain bullish on Gold Long-Term simply because monetary policy in the U.S. is showing no signs of change and the consumer will remain under significant inflationary pressure for some time, impacting overall GDP growth. Much of the stimulus package money in my opinion, will be spent on the increase in the cost of living. Honestly, I would not be the least bit surprised if another stimulus package is put together if the present one doesn't get people spending and living beyond their means again lol. The only bubble in the markets currently in my mere opinion is the dollar.


Best of Luck Longs



Position: Long AUY