He bought Canadian miner Agnico-Eagle Mines (AEM) for an average price around $29.21; it's now in the high 60s. Agnico is changing from a resource-development company to a "producing" company, with three principal projects in northwestern Québec. "With 16.7 million ounces of gold-equivalent proven and probable reserves, it has become a go-to name for investors wanting exposure to high-quality reserves in politically 'safe' geographies," he says. AEM should post Ebit near $180 million in 2008, and while is not as "cheap" as it was, it should benefit from rising gold prices in the future.

In an entirely different sector, Skinner holds shares in Canadian T-shirt maker Gildan Activewear (GIL), which he calls a prototypical "value plus growth" company. "It has a low-cost strategy, with highly automated plants in Honduras and the Dominican Republic," he says, adding that the company could be double its current size in five years. "We were given an opportunity to add to our position recently, with a production hiccup at its Dominican Republic plant. I expect them to fully recover and get back on the growth track by the end of the summer," he says. Gildan could generate Ebit of $149 million in 2008. His average cost has been around 25; the stock was recently at 30.11.

Skinner likes asset-manager Knight Capital Group (NITE) because it's undergoing a metamorphosis with chief executive officer Tom Joyce at the helm. "It is exiting low-margin businesses and enhancing the company's service offering by adding asset classes [now bonds, currency, international markets...not just U.S. equities] by acquiring faster-growing, high-margin boutiques," he says, adding that his average cost on the stock is 15.27. It is now around 18. Knight has three main assets: a global-markets electronic and voice trading platform, an interest in a hedge fund, and cash. Skinner thinks it increasingly provides an attractive alternative source of liquidity compared to the large global exchanges. "While results are difficult to predict with precision, given the volatility of market volumes quarter to quarter, NITE could generate on the order of $220 million in Ebit for 2008," he adds.

Another nugget in the rough is NovaGold Resources (NG). Skinner has been buying the gold and copper miner for an average cost of 11.26, but the stock has fallen back to 8.29. "Late last year...it disclosed materially higher projected costs on British Columbia's Galore Creek mine, which it has since decided to halt pending a revised mine plan," he says. "But the resources are still in the ground, and don't forget that Barrick Gold made a hostile run at them awhile back at a substantially higher price," Skinner says. They should get to positive Ebit this year (estimates are for $15 million in '08), with all eyes trained on the upcoming cost estimates for both Galore and Alaska's Donlin Creek Mine, due out sometime in the next few months.