EVN was smacked 7% on Wednesday due to a Goldman downgrade and overall weakness in the copper and gold sectors. We have discussed increasing our EVN position into weakness, and the market is coming to us nicely. We like the idea of accumulating below $7, but it’s never a perfect world. We may have to pay up, but at this stage, our preferred scenario is that gold corrects further, which should flow into EVN’s price; hence, we’re still exhibiting patience for now. However, as we often point out, gold stocks usually lead the precious metal, but at this stage, they’re correcting on their own as analysts downgrade the sector after recent euphoric valuations went too far.
- We like EVN around 5% lower: MM holds EVN in our Active Growth Portfolio.
MM is long and bullish on EVN and plan to average below $7
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