Editor’s Note: Related Tickers: Barrick Gold Corporation (USA) (NYSE:ABX), SPDR Gold Trust (ETF) (NYSEARCA:GLD), Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), Goldcorp Inc. (USA) (NYSE:GG)
Barrick Gold downgraded as questions mount (National Post)
The negative impact of uncertainty at Barrick Gold Corporation (USA) (NYSE:ABX)’s Pascua-Lama mine prompted JPMorgan to downgrade the stock on Monday. Analyst John Bridges cut his rating on the gold miner to neutral from overweight and slashed his price target to $34 from $47. A Chilean court ordered work must be due to complaints about environmental damage in the area. Barrick fell more than 15% last week after a Chilean court ordered the company to halt construction at the mine due to complaints about environmental damage in the area.
Since forming an all-time high in September 2011, SPDR Gold Trust (ETF) (NYSEARCA:GLD), a popular ETF proxy for the spot gold commodity, has merely been oscillating in a sideways range. However, it appears that a definitive move lower may be on the horizon in the coming weeks.” That “definitive move lower” occurred last Friday, as $GLD plunged 4.7% and sliced through a major level of horizontal price support.
Citigroup Downgrades Freeport-McMoran to “Sell” (FCX) (Dividend.com)
Citigroup downgraded gold and copper producer Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) on Monday, after the analysts cut their 2014 copper price by 13%. The analysts downgraded FCX from “Neutral” to “Sell” and now see shares reaching $25, down from the previous target of $35. This new valuation suggests a 22% downside to Friday’s closing price of $31.92.
Goldcorp Enters Oversold Territory (Forbes)
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. In trading on Monday, shares of Goldcorp Inc. (USA) (NYSE:GG) entered into oversold territory, hitting an RSI reading of 27.0, after changing hands as low as $27.74 per share.
Barrick Gold Hits Glacier, Investors Must Heed Growing Sector Risks (Seeking Alpha)
Barrick Gold Corporation (USA) (NYSE:ABX), the world’s largest gold producer, has had a series of cost over-runs and delays in developing its mine at Pascua Lama on the border of Chile and Argentina. The issues in Chile climaxed this past week with an injunction barring inquiry about effects on a local glacier and neighboring communities. This latest and potentially very costly setback follows other problems Barrick has had with investments in developing nations.
Freeport McMoRan: Value Creation Through Diversification (Seeking Alpha)
Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) is the only company in the world that has a chance at making the United States energy independent. I’m referring to Freeport’s diversification into oil and gas, which occurred when it acquired Mcmoran Exploration Co (NYSE:MMR) and Plains Exploration & Production Company (NYSE:PXP). When I speak of energy independence, I’m referring to…
…the ultra-deep Davy Jones well located in the shallow waters off the Gulf Coast. Of course, Davy Jones isn’t the only well that the company has acquired, but it is the most important one.
Goldcorp PT Lowered to $31.00 (GG) (The Utah People’s Post)
Goldcorp Inc. (USA) (NYSE:GG) had its price target lowered by Deutsche Bank from $35.00 to $31.00 in a research report sent to investors on Thursday morning, ARN reports. The firm currently has a hold rating on the stock. GG has been the subject of a number of other recent research reports. Analysts at Canaccord Genuity cut their price target on shares of Goldcorp from $51.00 to $46.00 in a research note to investors on Thursday.
Outflows in Gold ETFs Surge as Traders Bolt (Wall Street Journal)
Investors in gold exchange-traded funds have been rushing to the exits as gold prices plunge. More than $1 billion flowed out of the SPDR Gold Trust (ETF) (NYSEARCA:GLD) Friday, according to IndexUniverse, marking the third-largest outflow on record since the fund’s inception in 2004. Trading volume in the SPDR Gold Trust on Monday was running more than seven times average and was the heaviest on record, topping the previous high set in December 2009, as gold prices continued their free fall. More than 79 million shares had traded hands with about an hour left in Monday’s trading session, according to FactSet.
Barrick Gold Corp Given Outperform Rating at Credit Suisse (ABX) (Zolmax)
Credit Suisse currently has a $38.00 target price on the stock, down from their previous target price of $40.00. Shares of Barrick Gold Corporation (USA) (NYSE:ABX) traded down 11.32% during mid-day trading on Thursday, hitting $20.06. Barrick Gold Corp has a one year low of $22.58 and a one year high of $43.30. The stock’s 50-day moving average is currently $29.3. The company’s market cap is $20.083 billion.
Freeport McMoRan Copper and Gold Stock Rating Reaffirmed by BB&T (FCX) (The Utah People’s Post)
Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)‘s stock had its “buy” rating restated by equities researchers at BB&T in a report issued on Monday, Analyst Ratings Network.com reports. They currently have a $44.00 target price on the stock. Shares of Freeport McMoRan Copper and Gold traded down 7.51% during mid-day trading on Monday, hitting $29.524. Freeport McMoRan Copper and Gold has a one year low of $30.54 and a one year high of $43.65. The stock’s 50-day moving average is currently $32.6. The company has a market cap of $28.034 billion and a P/E ratio of 10.01.
