Cramer’s New Gold Stock (ABX, NEM, AUY, BHP)
October 3, 2007 by Douglas A. McIntyreOn tonight’s MAD MONEY on CNBC, Jim Cramer reviewed a stock that offers both protection and upside:
Barrick Gold (NYSE:ABX) has the most upside according to Cramer in gold stocks. The weak dollar is driving up gold prices in dollar terms, and he thinks the yellow shiny stuff itself is heading higher and even said he thinks you could see $1,000.00 gold. Barrick is not going to hedge going forward after having been hedged for many years, and Cramer thinks this is a bullish signal on their opinion of gold. Their costs have risen significantly to find gold, but the company has been able to hold costs against revenues and they have less political risk mining geographics.
Cramer said he used to prefer Newmont (NYSE:NEM), but he’s disappointed that it hasn’t converted on growth. Barrick closed at $39.41, and its 52-week trading range is $26.94 to $41.34. After Cramer discussed this it rose nearly 2% in after-hours to $40.10.
- In the past, Cramer has been a big fan of Yamana (NYSE:AUY).
- Last week we had that huge anticipation of the largest mine announcement from BHP Billiton (NYSE:BHP) in Australia.
Jon C. Ogg
October 3, 2007
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.