In a Research Highlights post Monday, we asked if Barrick Gold (ABX) had what it takes to make it into the INK September Top 40 stock report. On Thursday we revealed the answer in our September 5th INK Morning report. Here is the video summary of the morning report.
The INK Top 40 and trading day morning reports are available through INKResearch.com or the Canadian Insider Club.
Script (check against delivery):
When big institutional investors look to gain exposure to gold stocks, they tend to look for big liquid names. That has helped to boost Barrick Gold which is up 42.7% year-to-date. Institutional money managers are being forced to consider adding gold miners to their portfolios in light of bullion's persistent strength even in the face of a firm US dollar.
Barrick managed to grab the 39th spot in the INK September Top 40 Stock Report list. That is no small feat for a large cap stock as the Top 40 tends to be dominated by small and mid-cap names with high insider commitment.
On that front, Barrick is highly competitive. A culture of equity ownership has taken hold at the firm and is one of the hallmarks of Executive Chairman John Thornton's leadership.
Under his leadership, the company has also made some big corporate moves. At the start of this year, Barrick merged with Randgold which brought in mine operator Mark Bristow as CEO.
Later, Barrick and Newmont Goldcorp pooled their Nevada assets into a new business called Nevada Gold Mines which Barrick manages. Barrick owns 61.5% of the venture.
After the latest rally, Barrick stock is not cheap. However, the primary investment case for owning gold stocks at this point relates to having insurance against monetary system risk. Seeing an above average level of insider commitment at Barrick also gives us some comfort.
Our report which is not a recommendation to buy or sell securities is available through INKResearch.com and the Canadian Insider Club. Good luck friends and thanks for listening!
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