Jay Taylor reaffirms Dynacor as a buy
Taylor refreshes Dynacor buy
2014-06-27 20:45 ET - In the News
Jay Taylor, in the June 17, 2014, edition of Gold, Energy & Tech Stocks, refreshes his buy of Dynacor Gold Mines Inc., recently $1.70. Mr. Taylor said buy six times from Aug. 16, 2010, to Dec. 18, 2013, at prices ranging from 36 cents to $1.57. A $1,000 investment for each of the six buys is now worth $13,100. Dynacor is one Mr. Taylor's favourite stocks, in part because of its unique business model: It not only sells its own gold, but also buys ore from local miners and recovers gold through its mill. That model, and Dynacor's stock, took a hit recently because of Peruvian government intervention. In January, the government introduced strict new measures to fight illegal gold mining and exports, leading to long, unpredictable delays for Dynacor's sales. The company ended up deciding to suspend its ore purchases and slow down its processing work. It has since restarted all operations, resuming sales and exports in early March and bringing its mill back to full capacity this week, so its next quarter will benefit from the delayed sales. On top of that, 13 illegal mills were shut down by the government, so there are now 46 per cent fewer competitors. Mr. Taylor concludes that now is an excellent time to buy.