Continue reading Newmont is still mining the right commodities

Newmont is still mining the right commodities originally appeared on BloggingStocks on Tue, 29 Sep 2009 09:00:00 EST. Please see our terms for use of feeds.

When gold miners and gun-toters lag the broader economy, it's usually a good sign that conditions are on the mend. Both sectors outperform when times were tough, but this year, their growth has slowed relative to the market has a whole.

The S&P 500 index has gained 57% since March 9, 2009, according to a USA Today report, while Barrick Gold (NYSE: ABX) and Newmont Mining (NYSE: NEM) are up 36% and 21%, respectively, for the same period. Smith & Wesson (NASDAQ: SWHC) is up 30%. Again, these are definitely respectable results, but they aren't keeping pace with the index.

Continue reading Guns and gold tell the story on the economy

Guns and gold tell the story on the economy originally appeared on BloggingStocks on Sun, 20 Sep 2009 11:40:00 EST. Please see our terms for use of feeds.

Despite the U.S. stock market's recent run up, the decline in the U.S. dollar and inflation fears have investors searching for safety in these uncertain times. A popular strategy that has emerged is to hedge market and currency risk with commodities, namely gold, oil, and uranium. What specific stocks and investments in these sectors are likely to outperform?

ETFs like the US Oil Fund (NYSE: USO) and the SPDR Gold Shares (NYSE: GLD) will obviously track any rise or fall in these commodities to a T, but perhaps individual companies in these sectors are a better fit for you. Below are some industry giants, as well as speculative plays that are also drawing attention from investors.

Continue reading Hot commodity stocks to watch

Hot commodity stocks to watch originally appeared on BloggingStocks on Wed, 10 Jun 2009 13:40:00 EST. Please see our terms for use of feeds.

Just after the close yesterday, Newmont Mining (NYSE: NEM) guided up 2009 production and guided 2009 cash costs lower. NEM also announced that it would be purchasing the remaining interest in its majority owned Boddington Mine from Anglogold Ashanti (NYSE: AU) (which equates to 6.6 mln reserve ounces). That's an increase of 8 percent in NEM's Proven & Probable (P&P) reserves at a price tag of $1.2 bln, which will be raised via an equity offering of 19 mln shares.

Based on NEM's 441 mln shares outstanding, we're looking at dilution of just over 4 percent. Thus, in theory, the deal is not even dilutive, given the 8 percent increase in P&P reserves that the company is acquiring with only a 4 percent dilution in equity. Based on what I have seen so far, this looks like a spectacular deal for NEM.

Continue reading Newmont strikes a deal

Newmont strikes a deal originally appeared on BloggingStocks on Wed, 28 Jan 2009 12:19:00 EST. Please see our terms for use of feeds.

This post was written by Minyanville contributor Lance Lewis.

Banro (NYSE: BAA) jumped 13% yesterday after the company announced that it had finally completed its bankable feasibility study on its Twangiza project and proved up nearly 4 mln ounces of its 10 mln ounce resource. Thus, we can now calculate an NAV for BAA.

BAA has no debt. So, assuming $1,000 gold, 3.67 mln ounces of Proven & Probable reserves, an average cash cost of $429 per ounce over the life of the mine (which is based on the feasibility study), and the estimated $410 mln required for cap ex, we get an NAV of almost $15 a share (which gives zero value to the company's current cash balance of around $20 mln and its remaining 5.6 mln ounce resource at Twangiza, not to mention the resource estimates at its other properties).

Continue reading Banro (BAA): A golden stock

Banro (BAA): A golden stock originally appeared on BloggingStocks on Tue, 27 Jan 2009 13:15:00 EST. Please see our terms for use of feeds.

Continue reading Hedge Inflation with two gold ETF ideas: GDX and GLD

Hedge Inflation with two gold ETF ideas: GDX and GLD originally appeared on BloggingStocks on Wed, 19 Nov 2008 17:15:00 EST. Please see our terms for use of feeds.

Newmont Mining (NEM) lifted as gold rises above $900 again originally appeared on BloggingStocks on Mon, 09 Jun 2008 14:15:00 EST. Please see our terms for use of feeds.

Newmont Mining (NYSE: NEM), the world's largest non-hedged gold producer, is recently up $1.53 to $51.63. Gold is recently up 2.31% to $988.60, according to Bloomberg.

NEM April option implied volatility of 42 is near its 26-week average of 40 according to Track Data, suggesting non-directional price risks.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: Newmont Mining volatility flat as gold rallies 2.3% to $988 originally appeared on BloggingStocks on Wed, 05 Mar 2008 14:28:00 EST. Please see our terms for use of feeds.

Here are a few highlights from this past week's earnings coverage from BloggingStocks:

• Amkor Technology Inc. (NASDAQ: AMKR) easily beat estimates and raised its guidance.
• Crocs Inc. (NASDAQ: CROX) posted solid fourth-quarter results on strong overseas sales.
• DealerTrack Holdings (NASDAQ: TRAK) fourth-quarter revenue rose, but the credit crunch hurt results.
• Garmin Ltd. (NASDAQ: GRMN) fourth-quarter earnings soared on strong holiday sales.
• Gilat Satellite Networks Ltd. (NASDAQ: GILT) posted strong quarterly and full-year results.
• HJ Heinz Co. (NYSE: HNZ) raised its guidance productivity gains and favorable exchange rates.
• JAKKS Pacific Inc. (NASDAQ: JAKK) posted solid results, lifted by Hannah Montana and Disney toys.
• Marvel Entertaiment Inc. (NYSE: MVL) earnings doubled despite investment in films not yet released.
• Newmont Mining Corp. (NYSE: NEM) swung to a fourth-quarter loss despite rising gold prices.
• Safeway Stores Inc. (NYSE: SWY) met fourth-quarter earnings estimates, ending its best year since 2001.
• Wal-Mart Stores Inc. (NYSE: WMT) posted its first $100 billion quarter but lowered its forecast.

Also, Jim Cramer sees Hewlett-Packard as a market bellwether, and Ted Allrich looks at some other bellwether stocks. Sheldon Liber gets a sense of deja vu from Exxon Mobil's (NYSE: XOM) big profits and its tussle with Chavez.

Upcoming results to watch for include Nordstom Inc. (NYSE: JWN), Macy's Inc. (NYSE: M), Washington Post Co. (NYSE: WPO), Dell Inc. (NASDAQ: DELL), Sprint-Nextel Corp. (NYSE: S), and Sears Holdings Corp. (NASDAQ: SHLD).

Visit AOL Money & Finance for more earnings coverage.

Earnings highlights: Wal-mart, Crocs, Garmin, Safeway, Newmont and others originally appeared on BloggingStocks on Sat, 23 Feb 2008 09:40:00 EST. Please see our terms for use of feeds.

Among companies reporting quarterly earnings on Thursday were Safeway Stores Inc. (NYSE: SWY), the largest food retailer in North America, and Newmont Mining Corp. (NYSE: NEM), one of the world's largest gold producers.

Despite ongoing efforts to upgrade the image of its stores, Safeway, which reported that fourth-quarter earnings in-line with the consensus estimates of analysts surveyed by Thomson Financial, also reported that same-store sales slowed.

The quarterly earnings came to $301.1 million, or 68 cents per share, for the period that ended December 29, down 2% from $307.9 million, or 69 cents per share, in the same quarter of 2006, when tax benefits lifted results. Excluding that gain, earnings per share would have climbed by more than 11%. Fourth-quarter revenue rose 7% to $13.36 billion, which beat the analysts' average estimates.

Despite signs of a slowdown, the fourth quarter capped Safeway's most profitable year since 2001. The company earned $888.4 million, or $1.99 per share, on sales of $42.3 billion, compared to earnings of $870.6 million, or $1.94 per share, on revenue of $40.2 billion in 2006. For 2008, Safeway forecast earnings of $2.25 to $2.35 per share, in-line with analysts' expectations.

Safeway shares fell more than $3 in morning trading, reaching a new 52-week low of $28.80.

Continue reading Earnings recap: Safeway profit slips; Newmont swings to loss

Earnings recap: Safeway profit slips; Newmont swings to loss originally appeared on BloggingStocks on Thu, 21 Feb 2008 15:03:00 EST. Please see our terms for use of feeds.

Barrick Gold Corporation (NYSE: ABX) acquires, explores and develops mining properties. Products include gold, copper, silver and zinc. The firm is the top producer of gold in the world, taking eight million ounces annually from nearly thirty mines in North America, South America, Australia-Pacific and Africa. It has proven and probable mineral reserves of over 120 million ounces of gold, 6 billion pounds of copper and 964 million ounces of silver. Major competitors include Newmont Mining (NYSE: NEM) and Rio Tinto (NYSE: RTP).

The stock popped over the past week, as analysts predicted further upside in the price of gold. They anticipated that the prospect of more Federal Reserve rate cuts will continue to weigh on the dollar and expected that more investors will turn to gold as a hedge against inflation. The shares have begun to consolidate the gain in a bullish "pennant" pattern. Equities frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Continue reading Barrick Gold (ABX) shares forming bullish 'pennant'

Barrick Gold (ABX) shares forming bullish 'pennant' originally appeared on BloggingStocks on Mon, 07 Jan 2008 12:50:00 EST. Please see our terms for use of feeds.

Continue reading Why I think the market will drop 10+% in 2008

Why I think the market will drop 10+% in 2008 originally appeared on BloggingStocks on Fri, 04 Jan 2008 12:57:00 EST. Please see our terms for use of feeds.

After hitting a one-year low of $38.01 in August, the stock hit a one-year high of $56.35 in November. NEM opened this morning at $50.72. So far today the stock has hit a low of $50.49 and a high of $51.34. As of 11:05, NEM is trading at $51.17, up $1.14 (2.3%). The chart for NEM looks bullish but deteriorating, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $45 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 11.1% return in just 6 weeks as long as NEM is above $45 at January expiration. Newmont would have to fall by more than 11% before we would start to lose money. Learn more about this type of trade here.

Continue reading Newmont Mining (NEM) higher on rising gold futures

Newmont Mining (NEM) higher on rising gold futures originally appeared on BloggingStocks on Mon, 10 Dec 2007 12:58:00 EST. Please see our terms for use of feeds.

Where can you find the "Wall Street of the West?" In Colorado, of course -- specifically, Denver's 17th Street financial district.

Colorado's economy has come a long way from its foundation on trapping and mining. Denver's location, equidistant between Los Angeles and Chicago, between Seattle and New Orleans, has helped the Centennial State become the economic center of Rocky Mountain states -- even Denver's time zone and elevation help it keep in touch with the rest of the world. It's no wonder there's a large federal government presence in the state (U.S. Air Force Academy, NORAD, NOAA, Denver Mint, U.S. Geological Survey).

Companies such as Lockheed-Martin (NYSE: LMT), Qwest Communications (NYSE: Q), Comcast (NASDAQ: CMCSA), Molson Coors (NYSE: TAP), and Crocs (NASDAQ: CROX) offer a sense of the diversity of the state's economy. And so do the three companies examined here: Vail Resorts Inc. (NYSE: MTN), Dynamic Materials Corp. (NASDAQ: BOOM), and Newmont Mining Corp. (NYSE: NEM).

Continue reading Investing in Colorado: Vail Resorts (MTN), Dynamic Materials (BOOM), Newmont Mining (NEM)

Investing in Colorado: Vail Resorts (MTN), Dynamic Materials (BOOM), Newmont Mining (NEM) originally appeared on BloggingStocks on Tue, 20 Nov 2007 19:00:00 EST. Please see our terms for use of feeds.

Newmont Mining Corp. (NYSE: NEM), the world's largest non-hedged gold producer, closed at $54.50. Gold is recently up 2.36% to $842.80, according to Bloomberg. NEM November option implied volatility is at 44, December is at 42 above its 26-week average of 33 according to Track Data suggesting larger price risks.

Freeport McMoRan Copper & Gold (NYSE: FCX) closed at $113.50. FCX, is engaged in copper, gold and silver mining and production operations. Gold is recently up 2.36% to $842.80 according to Bloomberg. FCX over all option implied volatility of 46 is above its 26-week average of 43 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: Newmont Mining, Freeport McMoRan volatility up as gold at record originally appeared on BloggingStocks on Wed, 07 Nov 2007 11:18:00 EST. Please see our terms for use of feeds.

Lots more quarterly reports rolled out this past week, and here are some highlights of earnings coverage from BloggingStocks:

• Alcatel-Lucent (NYSE: ALU) reported more losses and more job cuts.
• Alvarion Ltd.'s (NASDAQ: ALVR) record quarter fuels speculation of a Cisco (NYSE: CSCO) buyout.
• Avon Products Inc.'s (NYSE: AVP) profit rose 61%, buoyed by strength in emerging markets.
• Chevron Corp. (NYSE: CVX) fell short of expectations due to tighter margins.
• CIGNA Corp. (NYSE: CI) had a solid quarter but warned about 2008 earnings.
• Clorox Co. (NYSE: CLX) blamed profit loss on materals costs, and announced acquistion of Burt's Bees.
• Colgate-Palmolive Co. (NYSE: CL) beat estimates by a penny and had strong sales overseas.
• Crocs Inc. (NASDAQ: CROX) beat earnings estimates and revised its full-year forecast.
• Dell Inc. (NASDAQ: DELL) announced it would restate revenues, ahead of its November quarterly report.
• Exxon Mobil Corp. (NYSE: XOM) missed expectations, also due to tighter margins.
• Given Imaging Ltd. (NASDAQ: GIVN) cited FDA approval delays for disappointing results.
• Hertz Global Holdings Inc. (NYSE: HTZ) posted record revenues and appointed a new CFO.
• Humana Inc.'s (NYSE: HUM) positive surprise lifted the share price to a new all-time high.

Continue reading Earnings highlights: Crocs, Exxon, Kraft, P&G, Sirius, and others

Earnings highlights: Crocs, Exxon, Kraft, P&G, Sirius, and others originally appeared on BloggingStocks on Sat, 03 Nov 2007 10:10:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Baird upgraded DPL Inc (NYSE: DPL) to Outperform from Neutral following better-than-expected guidance.
  
• Citigroup upgraded IAC/InterActiveCorp (NASDAQ: IACI) to Buy from Hold as they believe HSN's turnaround, Lending Tree's stabilization and Ask's profitability ramp should drive EBITDA growth acceleration in 2008. The company was also upgraded to Overweight from Equal Weight at Lehman following IAC's better-than-expected Q3 report.
  
• Citigroup upgraded shares of F5 Networks Inc (NASDAQ: FFIV) to Buy from Hold, as they believe now is the time to buy the stock with sentiment at a low-point heading into an attractive 2008 product cycle.
  
• Stifel raised its rating on Community Health Systems Inc (NYSE: CYH) to Buy from Hold based on improved visibility from detailed 2008 guidance.
  
• Kaufman upgraded Parametric Technology Corporation (NASDAQ: PMTC) to Buy from Hold based on an impressive quarter and favorable industry trends.

• China Life Insurance Company Limited (NYSE: LFC) was upgraded to Peer Perform from Underperform at Bear.
  
• The Pep Boys - Manny, Moe & Jack (NYSE: PBY) was upgraded to Neutral from Sell at Goldman.
  
• JP Morgan added Nalco Holding Company (NYSE: NLC) to its Focus List.
  
• RBC upgraded Newmont Mining Corporation (NYSE: NEM) to Sector Perform from Underperform.

Analyst upgrades: DPL, IACI, FFIV, CYH and PMTC originally appeared on BloggingStocks on Thu, 01 Nov 2007 10:55:00 EST. Please see our terms for use of feeds.

Newmont Mining Corporation (NYSE: NEM), the world's largest non-hedged gold producer, recently up $4.13 to $50.59:

NEM reported third quarter earnings per share of 72 cents verses consensus estimates of 25 cents. Gold was recently up .95% to $795.30 according to Bloomberg. NEM call option volume of 68,640 contracts compares to put volume of 36,594 contracts. NEM November option implied volatility of 38 was above its 26-week average of 32 according to Track Data, suggesting non-directional price risks.

Bank of America Corporation (NYSE: BAC) recently up 21 cents to $48.22:

BAC call option volume of 13,902 contracts compared to put volume of 4,588 contracts. BAC November option implied volatility of 28 was above its 26-week average of 23 according to Track Data, suggesting larger risk.

Volatility Index: VIX down 2.35 to 18.34, suggesting less risk after rate cut.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Visit AOL Money & Finance for more earnings coverage

Option update 10-31-07: Newmont Mining volatility at 38 as NEM rallies 8% on EPS, Gold near $800 originally appeared on BloggingStocks on Wed, 31 Oct 2007 16:29:00 EST. Please see our terms for use of feeds.

Newmont Mining Corp. (NYSE: NEM) stock is soaring to a new 52-week high today after the company's third quarter earnings release. Profit in the quarter doubled to $0.88 per share, obliterating analyst expectations of $0.25 per share profits. Even though gold futures are relatively flat today, prices have been rising recently, lifting the outlook for NEM. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on NEM.

After hitting a one year low of $48.42 in the summer, the stock has risen quite a bit, settling in above the $45 mark with recent resistance around $48 until today. NEM opened this morning at $47.40. So far today the stock has hit a low of $47.14 and a high of $50.63. As of 10:45, NEM is trading at $50.53, up $4.09 (8.8%). The chart for NEM looks bullish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a December bull-put credit spread below the $42.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 5.3% return in just 7 weeks as long as NEM is above $42.50 at December expiration. Newmont would have to fall by more than 15% before we would start to lose money.

Continue reading Newmont Mining posts great earnings

Newmont Mining posts great earnings originally appeared on BloggingStocks on Wed, 31 Oct 2007 13:04:00 EST. Please see our terms for use of feeds.

Newmont Mining (NEM) to buy rival Miramar (MNG) for $1.53 billion originally appeared on BloggingStocks on Tue, 09 Oct 2007 12:25:00 EST. Please see our terms for use of feeds.