Barrick Gold Corp (USA) (ABX)

Gold stocks have been out of favour and disconnected from the spot price of gold. This can be attributed to the fact that increasing costs of production have been out-pacing increases in the spot price. Barrick was in particularly worse shape relative to its peers, owing to its large proportion of hedging contracts. Barrick has recently bought its way out of all existing hedging on current producing mines, with the only hedging contracts being on some forward earning from mines which have yet to come to production.
Earnings are expected to rise sharply for Barrick, as it is now able to sell production gold at spot price. The demand/supply story for gold is also better than what may be believed by most. The supply side may appear to be sufficinet to meet demand, however this has been due to central banks selling their reserves. This activity can only last for a finite period of time, meanwhile demand from India, where gold is just as important for religious ceremonies as much as for aesthetics & a symbol of social status/wealth, and demand from China continue. Barrick commands ~10% of the worlds' annual production, has the worlds' largest reserves at ~123M ounces, and has just shy of $3B in cash to funds further exploration and acquisitions. This cash will prevent dilution of shareholder value, which Goldcorp (highly OVER-rated!!) is infamous for.
I have bought Barrick for my own portfolio recently, and while I'm not great at predicting bottoms and turn-around points (yes, I'm aware of my pitiful score), I personally believe that there is much more upside potential, than downside, for Barrick going forward.

Precious metals mines do well when precious metals rise. The price of the metals rises significantly but not because it's suddenly that much more expensive to mine. . . therefore the profitability of these mines goes up.

The price of gold continues to climb as the value of the dollar continues to deteriorate. Gold is a perfect hedge against the current inflation that is upon us. If you don't want to own gold bullion and put it under your pillow (makes for restless nights in more ways than one) then why not own a piece of the action with a successful mining company. Barrick Gold Corp appears to be a strong performer that has continued to grow in this bearish market. Plus - this pick has been endorsed by other Wall Street gurus like Jim Cramer. What else can you say about it - this one is a goldmine!

Barrick is dramativally reducing its hedge book and is in a very strong multi-year uptrend that should continue for several more years. Patience is required there will be corrections at times. If the uptrend is broken, then all bets are off.

With dollars diluted by FED action money, as in Ag and Au, will be relativly stronger

The dollar remains weak and not signs from Washington to try and fix the problem. Lower P/E makes it attractive.

This is the best Gold play right now. World's largest gold producer. The only worry investors have is whether it will be able to replenish its large gold reserves. But being a true leader for decades it will make good acquisitions like a walk in the park. The recent actions by the company of getting rid of non core operations and cost savings is a good indicator of the efficient management. It has the best risk reward ratio right now. Highly undervalued. Would touch 35+ by EOY. Also all the global factors like rising inflations, booming economies of china and india can only help us. No one wants to hold a declining dollar. They would rather keep bullion.

The Competition Ends soon, and this is a gold play :-)

With the market's feverish pitch and that nagging inflation not going away--I wonder why with such a tidal wave of liquidity floating around the world--gold will resume its upward trend. ABX is a low-cost, reasonably valued mining company near its 52-week low.

Jump aboard on this steady rise to the top, inflation favors the conservative investor aka doomsday investors. My grandpa always thought holding a chunk a gold felt better than a piece of paper. A country can crumble without gold in the foundation..........

Hey, im a sucker for gold...and since this basically indexes gold, im rolling with it. Gold has been rising for years and years(Seriously, check the currency charts!)...and dispite its recent declines, it still got alot more years to go UP UP UP!

Gold...not much more to say on that one. Take your pick, the U.S. currency or Gold. When the currency bounces back look for gold to take a little hit. That's not happening right now so ride the gold wave. It still has further to go.

The Canadian company shows great prospect for higher production in the near future. Currentky the rate of production is down which makes this a more rare commodity. If history prevails and the dollar goes down as anticipated, gold will contiune to increase in price and thus the revenues of ABX will.

Gold. Either you think it's just another commodity and a bit of a joke, or you think it's going to climb steadily as the US dollar goes down. I'm thinking it will make its shareholders lots of cash in 2009.

Gold will eventually go up as soon as companies/funds/countries stop selling it to stay afloat.

Plain and simple....market saturation of an ever accumulating element. Also Gold is becoming more and more obsolete in practicality in todays modern world. It just aint what it used to be. Bottom line. Also Too many geese laying the golden eggs, so to speak. There's just too many companies in the business and will always be more in the future. Think about it...It's never thrown out ! Always recycled. Like I said, market saturation on and ever accumulated element. At an exponential rate to boot !

There has been two much panic and even gold has taken a hit due to the doomsday sayers....it is almost over and this will go for a ride soon, IMO :)

Gold is going higher and supply is smaller than demand. Cost of production is also higher but as more people buy gold for protection against inflation the sells will outweigh the cost. Personal hunch is this stock will advance with the spot price of gold. Commodities are just that, either something needed or wanted. Gold will fall again but that is in the future. I will admit I think silver is still the long term investments real winner. It is used in so much stuff and is actually consumed. We cant get it back. The same gold the Incas were mining is still in circulation today. Were just infatuated with this yellow metal that looks pretty. Maybe the US dollar will go back to a gold or silver standard. i doubt it but who knows with our politicians nowadays.

I still think gold stocks will pick up, but this is my second try for this one: I picked it at a local high price last time.