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Tuesday, October 19, 2010

Yamana (NYSE:AUY) Still Struggles to Gain Respect, Traction

Although there have been a lot of positive comments and data presented on the future of Yamana Gold (NYSE:AUY), it continues to struggle to gain respect and traction in a gold investment climate that should result in a much better price movement for the gold miner.

Scotia interrupted the attempted party again, downgrading Yamana from "Sector Outperform" to "Sector Perform."

With analysts having eight "strong buy" ratings, six "buys," and four holds" on Yamana, we will probably see more downgrades for them in the near future.

Most people continue to hold out hope that Yamana will take off, and yet it continues to linger, even though it does seem to have a number of reasons to be a solid investment and outperformer.

Their extremely low production costs alone make it a desirable company, coming in at a little over $100 a gold-equivalent ounce.

That gives them a lot of flexibility and enables them to operate in weak and strong markets when competitors would flounder.

Yamana also has significant metal resources like zinc, copper, molybdenum and silver, all of which are positioned to move up nicely in price, especially copper and silver.

From last year at this same time, Yamana has generated a loss for its share price, closing Monday at $11.17, losing $0.10, or 0.89 percent.

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