Golden Star Resources Ltd. (USA) (AMEX:GSS)

OTMoptionsfool (37.64) Submitted: 2/13/2009 9:09:08 PM : Start Price: $1.66 GSS Score: -104.46

I know this one is already a 4 star caps pick, but I like an awful lot of things about this stock and I am a recent buyer at around $1.50 during it's latest correction. A gold ONLY mining company based in Littleton, CO that has been around since 1984 makes it stable, GOOD at what it does(25 years) AND American owned all of which are characteristics badly needed in this economy today. Most of it's working mines and development properties are located in Ghana, West Africa with a few exploration projects in South America meaning most of it's 1,600 employees are probably NOT American giving them a cost per ounce advantage I would think. Their 3rd quarter earnings call was a good one despite the falling price of the stock: "Revenues for the third quarter of 2008 of $64.1 million were 34% higher than the $47.8 million
for the same period in 2007. Revenues for the first nine months of 2008 totaled $187.7 million and were improved by 78% over gold revenues for the first nine months of 2007 at $105.7 million". The 4th quarter earnings call is Thursday, Feb. 26th and they expect more of the same with expectations for 2009 right now at 400-450k oz. of production. I look for this stock to run up as we get closer to that call and there are some fund managers who seem to be in agreement, including: Tiaa Cref(NEW holding, Feb.), Churchill Management(NEW holding, Jan.), Putnam Vt Global Asset(NEW holding, Nov. 08), Credit Suisse(ADDED), Dec. & Nov. 08), Credit Agricole(ADDED, Feb. 09) to name just a few of the 98 institutions who hold their stock. The chart on GSS is one of the few found today with a steady uphill trend and an inevitable 50/100 moving average cross setting up nicely with both of those lines pointing up. It is however a bit extended trading near it's 200 day and it is currently in a correction. If it can get through resistance at $1.69 it should run up to $3 quickly.