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.
Brokers recommend the issue with three "strong buys," five "buys," twelve "holds" and one "underperform." Analysts expect a 34% growth rate, through the next year. The ABX Price to Book ratio (2.81), Operating Margin (18.51%) and Net Profit Margin (12.53%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 71% of the outstanding shares. Over the past 52 weeks, the stock has traded between $26.94 and $49.33. On Friday, it closed at $47.93. Should you decide to invest, allow morning volatility to pass and consider a stop-loss of $41.50.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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Reader Comments (Page 1 of 1)
1-30-2008 @ 8:17PM
PAUL said...
I love ABX
1-07-2008 @ 1:09PM
dark69 said...
cool news i think ABX will easily jump over $50 and it will definitely cross $65 in this week
Mani
http://fastsharetrading.info