I follow quite a lot of companies, so the usefulness of a watchlist to me cannot be overstated. Without my watchlist, I’d be unable to keep up on my favorite sectors and see what’s really moving the market. Even worse, I’d be lost when the time came to choose which stock I’m buying or shorting next.
Today is Watchlist Wednesday, so I’m discussing three companies that have crossed my radar in the past week — and at what point I may consider taking action on these calls with my own money. Keep in mind that these aren’t concrete buy or sell recommendations, nor do I guarantee I’ll take action on the companies being discussed. What I can promise is that you can follow my real-life transactions through my profile and that I, like everyone else here at The Motley Fool, will continue to hold the integrity of our disclosure policy in the highest regard.
Yamana Gold Inc. (USA) (NYSE:AUY)
Even if you’re not the biggest fan of metal stocks, if you’re going to add one to your Watchlist, make it Yamana Gold Inc. (USA) (NYSE:AUY).
Earlier this year, I ran a comparison of the top 12 gold miners, taking into account their mining costs, P/E ratio, production growth, and debt-to-equity, and Yamana Gold Inc. (USA) (NYSE:AUY) easily came out on top. The Yamana Gold Inc. (USA) (NYSE:AUY)advantage relates to the fact that its South American mines are rich with copper and molybdenum in addition to gold. These byproducts help offset the company’s gold mining costs and give it a product that can be in high demand across a myriad of regions — copper in china and molybdenum for steelmaking in the U.S, for example.
Relatively speaking, there is only one of other gold miner that even comes close to Yamana Gold Inc. (USA) (NYSE:AUY)’s cost structure thanks to byproducts, Goldcorp Inc. (USA) (NYSE:GG). While I have nothing at all against Goldcorp Inc. (USA) (NYSE:GG) (in fact, I feel it should be on your Watchlist as well), its byproduct costs have shot higher in recent quarters and stood at $565/oz. as of the first quarter. It’s also having legal issues with regard to certain land rights located within its Penasquito mine site. By comparison, Yamana Gold Inc. (USA) (NYSE:AUY)’s first-quarter byproduct cash costs totaled just $383/oz. and its all-in sustaining costs were nearly $280/oz. lower than Goldcorp Inc. (USA) (NYSE:GG)!