Top TSX Stock Picks for June Mat Litalien: Pretium Resources
Given the uncertain outlook, I think its important for investors to remain defensive. The price of gold should be well supported given the significant amont of Government stimulus being pumped into the economy. In the space, Pretium Resources (TSX:PVG)(NYSE:PVG) is one of the most attractive in terms of relative valuation.
The company had a spotty 2019 as Brucejack is proving to be a very complex project. This is leading to higher than expected AISCs. However, Brucejack is still a high-grade, world class asset and Pretium is still generating lots of cash at these levels. After Detour Gold got eaten up by Kirkland Gold earlier this year, Pretium is the last large, single-asset company. This makes it a prime takeover target.
Trading at only 12.45 times forward earnings, 1.65 times book value and with growth rates in the 20%+ range, it is one of the cheapest stocks in the industry.
Fool contributor Mat Litalien has no position in any of the stocks mentioned.
https://www.fool.ca/2020/06/01/top-tsx-stock-picks-for-june/