Ed Bugos Highlights the Following Stocks: Goldcorp, Coeur D'Alene, and Meridian.
CHICAGO--(BUSINESS WIRE)--July 30, 2003
If the gold market is going to get rolling again in the near-term, it would be good to read behind the lines of their earnings reports with an expert like Ed Bugos. Get his take on three companies that may help your portfolio hit the jackpot. Read about Goldcorp (NYSE:GG), Coeur D'Alene (NYSE:CDE), and Meridian (NYSE:MDG). Click here for the full story exclusively on Zacks.com: http://featuredexpert2bw.zacks.com/
Here are the highlights from the Featured Expert column:
Goldcorp (NYSE:GG) is one of the market's darlings. The market expected the company to earn 9 to 10 cents per share (U.S.) in the second quarter and it did - thanks in part to lower taxes, and the 13% higher gold price which helped offset the year over year 16% gain in cash operating costs. In other highlights, the company said it raised its gold bullion holdings to 7.6 tonnes during the quarter, and boasts that it now owns more gold than Mexico.
But what do they plan to eventually do with the Bullion?
Bugos thinks that the change in cashflow habits two quarters in a row - despite good profit conditions - suggests that they're scrambling to find something new to sink their teeth into.
Coeur D'Alene (NYSE:CDE) hasn't been the favorite as some of the others have. There are obvious reasons. Silver has generally lagged behind gold's performance since last summer, for one, and Coeur D'Alene is mainly a silver producer. Of course Bugos thinks that'll all turn around. The significance of his attention to the sector just means that he thinks it's going to be sooner than later. If silver is breaking out, investors are going to be looking for a turn around story. And Bugos thinks CDE is at least as good a bet as any.
Meridian (NYSE:MDG) is the epitome of cheap in this sector, but then, cash costs rose sharply in the second quarter to $102 per (gold) ounce from $92/oz in Q1, and $79/oz in the year ago period. In fact, costs were up across the board. The company said it earned 10 cents compared to 9 cents in Q1 and 15 cents in the year ago period. It would have only been 7 cents if it weren't for the profit on the sale of its interest in the Jerritt Canyon mine. Operating earnings in fact did decline.
It's also cheap because the market priced the Esquel project right out of its share price. At any rate, as bad as the fundamentals look, Bugos has always got his eye out on this one.
Stay on top of the currency and gold markets with additional commentaries from expert Ed Bugos, and don't forget to read the full story on the above-mentioned companies, by clicking: http://featuredexpert3bw.zacks.com/
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|Date:||Jul 30, 2003|
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