This gold and silver producer beat analysts’ estimates by $0.06 last quarter. And seven analysts have increased their earnings forecasts for the company in the past month.
Tahoe Resources (TAHO)
From Capitalist Times
Gold remains the best way to profit from growing concerns about the efficacy and long-term effects of central banks’ extraordinarily accommodative monetary policies.
Rising interest rates tend to weigh on gold prices because investors prefer to store their cash in dollar-, yen- or euro-denominated assets that offer at least a modest yield. Accordingly, the current era of ultra-low interest rates should provide a tailwind for gold prices.
If the Federal Reserve opts to increase interest rates at a gradual pace (or fails to hike rates in 2016), gold prices could enjoy a banner year. Inflationary pressures would also be a boon for gold prices.
Investor demand for gold continues to increase, with many opting for the convenience of SPDR Gold Shares and other popular exchange-traded funds (ETF).
We’ve added Tahoe Resources (TAHO), a midsize gold and silver producer to the Wealth Builders Portfolio as a speculative bet on further upside in gold prices.
The midsize gold producer boasts a clean balance sheet with a net cash position and last year generated $244 million in cash flow from operations.
With a dividend yield of nearly 2%, Tahoe Resources rates a buy up to US$13 per share as an aggressive bet on gold prices.
Prospective investors should consider keeping their initial position on the small side and setting a limit order to buy additional shares when Tahoe Resources’ stock slips to $11.50.
Elliott Gue, Capitalist Times, www.capitalisttimes.com, 888-960- 2759, April 27, 2016