Peter Brieger is CEO and managing director with GlobeInvest Capital Management. His focus is on North American large cap stocks.
Central Fund of Canada
Central Fund "A" holds gold and silver bullion in an 80%/20% ratio. Our highly favourable view on gold is based on our view that it will be a key part of the world's financial system and is insurance against disaster and inflation.
For a gas-oriented company with a high yield the key question is whether it can maintain its current dividend payment of $1.44. Based on our discussions with management we think it can.
Scorpio is an emerging gold exploration and production company based in Nevada. It is in production with a 2012 target of 60,000 ounces and a three-year target of 100,000 ounces. It has an aggressive exploration program on the current property.
Past Picks: Jan. 27, 2011
Total Return: -10.14%
Total Return: -33.54%
(Acquired by China's Sinopec)
Total Return Average: -12.02%
Since their October lows, the TSX is up about 10.7 per cent and the S&P 500 about 20.6 per cent. Even though both are reasonably priced based on estimated 2012 earnings and are likely responding to improving U.S. economic data and sentiment readings, Europe still represents a potential unquantifiable headwind. A modest pullback from current levels would not surprise us.
Compiled by Franklin Cameron, BNN Market Call Tonight