Go Bottom-Fishing for Gold

by Sam Collins | May 11, 2012 1:10 am

Yamana Gold (NYSE:AUY[1]) — The Trade of the Day has recommended this large-cap Canadian gold miner several times. And early this year, fundamental analysts, like Credit Suisse, raised their target from $18 to $21 because of the company’s increase in gold reserves and its ability to meet estimates and increase its dividend. Yet AUY’s stock price slipped along with the other miners.

Yesterday, gold was recommended as a “buy” by Goldman Sachs, and on Tuesday, AUY’s price action triggered a “buy” from our internal indicator, the Collins-Bollinger Reversal (CBR) — and did it on high volume.

Furthermore, USAA was quoted as saying that AUY was one of their “top 10” holdings and “They’re becoming a poster child if you want to get good returns.”

For bottom-fishers, this is a good opportunity to own one of the best mining stocks. Buy AUY as a long-term hold with a price target north of $20.

05 11 12 auy 300x190 Go Bottom Fishing for Gold
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chart key Go Bottom Fishing for Gold

Endnotes:
  1. AUY: http://studio-5.financialcontent.com/investplace/quote?Symbol=AUY

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