Advanced Micro Devices, Inc. (AMD), Gold Fields Limited (ADR) (GFI): This Is a Problem…

In Gold Fields Limited (ADR) (NYSE:GFI)’ most recent quarterly results, the company reported a $129 million loss, primarily due to impairments on existing gold assets, but also reported a very concerning total all-in operating cost of $1,572/oz. If gold remains under $1,400/oz. for any extended period of time, Gold Fields is going to have a very difficult time maintaining profitability, even with cost-cutting.

Looking ahead, Gold Fields Limited (ADR) (NYSE:GFI) has reduced its capital expenditures from $130 million to just $80 million and through a reduced mining schedule hopes to get its all-in costs down to around $1,300/oz. Unfortunately, with potentially lower output and reduced margins, short sellers may wind up with the upper-hand here even if gold finds its footing and rallies a bit. African miners of all forms are a big gamble moving forward until labor costs are brought under control.

Foolish roundup
This week is all about whether or not a turnaround will stick for these three stocks. For homebuilders that are heavily reliant on record-low lending rates and Gold Fields Limited (ADR) (NYSE:GFI), which needs a big rally in gold prices, I could see plenty of bumps in the road. For Advanced Micro Devices, Inc. (NYSE:AMD), it won’t be a perfect rebound, but a return to profitability and big wins in both new gaming consoles should have short sellers shaking in their boots.

The article Shorts Are Piling Into These Stocks. Should You Be Worried? originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool recommends and owns shares of Intel. It also owns shares of Microsoft. 

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