Gold Companies Recap

Let’s start the New Year off by talking gold. I started blogging about my opinion on the precious metals and individual gold companies on Nov 6th, 2009 with a company called Yamana Gold Inc ( Read that blog here).

Yamana Gold - (AUY - $7.61)

Yamana Gold (AUY) was trading at $4.67 a share and my thinking was fairly simple and that being the economy is in a mess and people will eventually start finding these beaten up gold companies attractive once again. Since that original post Yamana Gold has seen it’s stock price increase about 63% ( Current Price - AUY $7.61).

So the question is - Is Yamana Gold still oversold? Let me say that in my opinion many of these gold companies have been beaten up along with the rest of the market and Yamana Gold has certainly proven that it was one of them. Yes I do realize that at 63% jump in 60 days is quite a move and here is where each individual investor must make their own decision.

My personal opinion is that Yamana will continue to outperform the market and many of the other gold companies in the coming year and I think it continues to be a company that individual investors will want to consider as we continue to see the economy weaken.

Western Goldfields - (WGW - $1.56)

2oversold.com added Western Goldfields (WGW) to our companies worth a look blog on Dec 13th, 2008 when it was trading at $1.30 and at the time we stated our opinion that this stock simply had a nice niche market and also exposure to copper. Again our reasoning was simple. Western Goldfields should benefit from any investor interest in the gold miners but also may get some interest if/when copper starts moving upwards again. You can read the Western Goldfields blog here .

Granted Western Goldfields is currently up only about 20% since that blog but in my opinion this one is still a company that individual investors will want to keep an eye on. Even at $1.56 I continue to believe Western Goldfields is simply 2oversold and is certainly worth a look.

Northgate Minerals Corporation - (NXG - .90)

Northgate Minerals Corp (NXG) was our most recent addition to companies in the precious metals sector of the markets. Northgate was added on Dec 28th at a price of .77.

Currently Northgate shares have added about 16% in a little over 5 trading days. A nice move to be sure but again this is one that we think over the next 12 - 18 months is only going to see more interest as the economy continues to weaken due to the recession and other factors that are currently weighing on the markets. You can read our opinion on Northgate Minerals (NXG) here

As we look ahead to 2009 we expect it to be a very rough year for the market and many companies in general. However we do feel there will be opportunity and 2oversold.com will be blogging about the economy and the companies that interest you so be sure and tune in to 2oversold.com!

2oversold.com is a blog for the individual consumer and private investor. We are not experts in the markets nor do we make any recommendations of any company. The companies we blog about are discussed for the purpose of this blog only and this should not be considered as investment advice.