![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
Sunday
May062007
Agnico Eagle Mines Ltd: Set to go higher?
Sunday, May 6, 2007 at 08:30AM
Agnico has a market capitalisation of just under $4 billion and a super pipeline of projects going forward. So it is a puzzle to us that its stock price is not performing better than it is.
Chart:
We are hopeful that the 50 DMA will indeed bounce off the 200 DMA and head north in the coming week or so. The technical indications are in favour of an upward move, particularly the Stockastics that dropped to below 20 and have now turned upwards.
We also expect gold to push higher from here which should help lift Agnico to the $40.0 level and if gold does go on to challenge its old recent highs of $730.0 then this gold stock should be knocking on the $50.0 door.
The take over of Cumberland does not appear to have been well received by the market as it has had little or no effect on the stock price. We think that it is a good acquisition and adds ounces to the pipeline. The market is going through a consolidation phase where it is easier to add to your reserves by making a purchase on Bay Street rather mine for a new discovery.
We will continue to hold what we have and should some cash become available then we would be buyers at this price.
Chart:
We are hopeful that the 50 DMA will indeed bounce off the 200 DMA and head north in the coming week or so. The technical indications are in favour of an upward move, particularly the Stockastics that dropped to below 20 and have now turned upwards.
We also expect gold to push higher from here which should help lift Agnico to the $40.0 level and if gold does go on to challenge its old recent highs of $730.0 then this gold stock should be knocking on the $50.0 door.
The take over of Cumberland does not appear to have been well received by the market as it has had little or no effect on the stock price. We think that it is a good acquisition and adds ounces to the pipeline. The market is going through a consolidation phase where it is easier to add to your reserves by making a purchase on Bay Street rather mine for a new discovery.
We will continue to hold what we have and should some cash become available then we would be buyers at this price.
Reader Comments (1)
AEM will release an earnings report on July 26th. So do you think we have any reason to expect an earnings surprise in the report?