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A look at a miner that I continue to remain very bullish on - AEM

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April 30, 2010 – Comments (1) | RELATED TICKERS: AEM

No need to lay out the fundamentals for Agnico-Eagle Mines (AEM). They were intact years ago when I first valued them and the case for their continued favorable valuation still remains high. Instead, let me point you to a few articles from the man who really knows his Gold and GSMs, Christopher Barker (TMFSinchiruna)

-- Enjoy the View From Gold Mountain
-- Agnico Braves the Cold for Gold
-- Our Little Eaglet Is All Grown Up
-- Agnico-Eagle Will Shine in '09

But what I am more interested in focusing on here are the technicals. And I think they are still *very* favorable for AEM. Of course, this presupposes you are bullish on gold as well (and I obviously am).

I think we have a large bullish ascending triangle in the making and getting close to completion (both a sym-tri and an ascending-tri are continuation patterns, but the ascending tri is marked by a top line that is down-sloping/nearly horizontal with a bottom support line that is clearly uptrending). And as the notes on the charts suggest, there is still a lot of upside potential.

ENLARGE

ENLARGE

(Disclosure: I am long AEM)..

1 Comments – Post Your Own

#1) On May 03, 2010 at 4:38 AM, MGDG (34.90) wrote:

I took a position in AEM at $56 in Feb 10' as I saw they have the opportunity to double production this year. While I think we'll see their mining costs rise with the new mines, they should be able to fund future exploration and reserve growth from cash flows.

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