Q: For a single gold stock at 5% of a TFSA, would you pick FNV or AEM, and why?
Jack
Jack
5i Research Answer:
FNV, as a royalty company, has a much higher valuation (42X vs 22X). This is not 'bad' as royalty companies do not take on production or other risks. They basically just cash cheques. We like both a lot. If just one, we would lean to AEM on better stock momentum and a higher yield.