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It continues to be a dominant player in the sector with production estimated to increase by 70% over the next five year years. It has one of the highest leverage-to-spot gold prices because of its completely un-hedged position. It is also among the world's lowest-cost gold producers. It has a huge assortment of projects that should help it easily meet its targeted goal of achieving a 70% increase in production over the next five years. Management expects production to grow by more than 65% at Penasquito in Mexico and proven reserves increased by 42% at Los Filos. Management expects Gold production at Pueblo Viejo in the middle of 2012, at Cero Negro approximately in the 2nd quarter of 2013, at camino Rojo in 2014 and at Eleonore in late 2014 and El Morro in 2017.

Additional reasons to be bullish on Goldcorp (NYSE:GG):

  • Net income rose from $240 million in 2009 to $1.8 billion in 2011
  • Cash flow increased from $1.52 in 2009 to $3.22 in 2011
  • The company is benefiting from rising gold prices, facility expansions and its aggressive acquisition strategy
  • Annual EPS before NRI rose from $0.62 in 2007 to $2.22 in 2011
  • Quarterly revenue growth rate of = 10.9%
  • A profit margin of 31%
  • A low beta of 0.49, indicates that it's not a very volatile stock
  • It has a very low payout ratio of 25%
  • A great retention ratio of 75%
  • A projected 3-5 EPS growth rate of 14.06%
  • A very good current and quick ratio of 3.12 and 2.4 respectively
  • A splendid interest coverage ratio of 102]
  • A great long term debt to equity ratio of 0.03
  • EPS 5 year growth rate of 19.5%
  • 5 year sales growth rate of 21.84%
  • Price to free cash flow of $20.40
  • Year over year projected growth rate of 46% for 2013
  • $100K invested for 10 years would have grown to 314K.


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Company: Goldcorp Inc


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Brief Overview

  1. Relative Strength 52 weeks = 36
  2. Levered Free Cash Flow = -123.38M
  3. Cash Flow 5-year Average = 1.47
  4. Profit Margin = 31.1%
  5. Operating Margin = 45.57%
  6. Quarterly Revenue Growth = 10.9%
  7. Quarterly Earnings Growth = -26.4%
  8. Operating Cash Flow = 2.10B
  9. Beta = 0.49
  10. Short ratio= 1.00%

Growth

  1. Net Income ($mil) 12/2011 = 1881
  2. Net Income ($mil) 12/2010 = 1381
  3. Net Income ($mil) 12/2009 = 240
  4. Net Income Reported Quarterly ($mil) = 479
  5. EBITDA ($mil) 12/2011 = 3261
  6. EBITDA ($mil) 12/2010 = 2448
  7. EBITDA ($mil) 12/2009 = 1049
  8. Cash Flow ($/share) 12/2011 = 3.22
  9. Cash Flow ($/share) 12/2010 = 2.2
  10. Cash Flow ($/share) 12/2009 = 1.52
  11. Sales ($mil) 12/2011 = 5362
  12. Sales ($mil) 12/2010 = 3800
  13. Sales ($mil) 12/2009 = 2724
  14. Annual EPS before NRI 12/2007 = 0.62
  15. Annual EPS before NRI 12/2008 = 0.56
  16. Annual EPS before NRI 12/2009 = 0.8
  17. Annual EPS before NRI 12/2010 = 1.37
  18. Annual EPS before NRI 12/2011 = 2.22


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Dividend history

  1. Dividend Yield = 1.4
  2. Dividend Yield 5 Year Average 12/2011 = 0.64
  3. Dividend 5 year Growth 03/2012 = 31.5%

Dividend sustainability

  1. Payout Ratio = 0.25
  2. 3. Payout Ratio 5 Year Average = 0.25

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 14.06
  2. ROE 5 Year Average = 4.79
  3. 8. Current Ratio = 3.12
  4. Current Ratio 5 Year Average = 2.9
  5. Quick Ratio = 3.08
  6. Cash Ratio = 2.47
  7. Interest Coverage = 102

Interesting companies

Company: South Company (NYSE:SO)

Levered Free Cash Flow = -656.00M

Brief Overview

  1. Percentage Held by Insiders = 0.49
  2. Number of Institutional Sellers 12 Weeks = N/A
  3. 3 Month Percentage Chg Short Interest = n/a
  4. Relative Strength 52 weeks = 81
  5. Cash Flow 5-year Average = 4.41
  6. Profit Margin = 12.46%
  7. Operating Margin = 24.02%
  8. Quarterly Revenue Growth = -10.2%
  9. Quarterly Earnings Growth = -12.8%
  10. Operating Cash Flow = 5.47B
  11. Beta = 0.11
  12. Percentage Held by Institutions = 43.4%
  13. Short Percentage of Float = 1.3%

Growth

  1. Net Income ($mil) 12/2011 = 2268
  2. Net Income ($mil) 12/2010 = 2040
  3. Net Income ($mil) 12/2009 = 1708
  4. Net Income Reported Quarterly ($mil) = 368
  5. EBITDA ($mil) 12/2011 = 6392
  6. EBITDA ($mil) 12/2010 = 5792
  7. EBITDA ($mil) 12/2009 = 5297
  8. Cash Flow ($/share) 12/2011 = 5.01
  9. Cash Flow ($/share) 12/2010 = 4.66
  10. Cash Flow ($/share) 12/2009 = 4.62
  11. Sales ($mil) 12/2011 = 17657
  12. Sales ($mil) 12/2010 = 17456
  13. Sales ($mil) 12/2009 = 15743
  14. Annual EPS before NRI 12/2007 = 2.24
  15. Annual EPS before NRI 12/2008 = 2.37
  16. Annual EPS before NRI 12/2009 = 2.32
  17. Annual EPS before NRI 12/2010 = 2.37
  18. Annual EPS before NRI 12/2011 = 2.57


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Dividend history

  1. Dividend Yield = 4.2
  2. Dividend Yield 5 Year Average = 4.6
  3. Dividend 5 year Growth = 3.8

Dividend sustainability

  1. Payout Ratio 03/2012 = 0.77
  2. Payout Ratio 5 Year Average 12/2011 = 0.74

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 5.04
  2. ROE 5 Year Average = 13.53
  3. Current Ratio = 0.96
  4. Current Ratio 5 Year Average = 0.98
  5. Quick Ratio = 0.61
  6. Cash Ratio = 0.41
  7. Interest Coverage Quarterly = 3.77

Company: Chevron Corp (NYSE:CVX)

Growth

  1. Net Income ($mil) 12/2011 = 26895
  2. Net Income ($mil) 12/2010 = 19024
  3. Net Income ($mil) 12/2009 = 10483
  1. EBITDA ($mil) 12/2011 = 60545
  2. EBITDA ($mil) 12/2010 = 45168
  3. EBITDA ($mil) 12/2009 = 30666
  4. Cash Flow ($/share) 12/2011 = 19.99
  5. Cash Flow ($/share) 12/2010 = 15.91
  6. Cash Flow ($/share) 12/2009 = 10.86
  1. Sales ($mil) 12/2011 = 253706
  2. Sales ($mil) 12/2010 = 204928
  3. Sales ($mil) 12/2009 = 171636
  1. Annual EPS before NRI 12/2007 = 8.63
  2. Annual EPS before NRI 12/2008 = 11.38
  3. Annual EPS before NRI 12/2009 = 4.84
  4. Annual EPS before NRI 12/2010 = 9.45
  5. Annual EPS before NRI 12/2011 = 13.44


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Dividend history

  1. Dividend Yield = 3.4
  2. Dividend Yield 5 Year Average = 3.10
  3. Dividend 5 year Growth = 7.7

Dividend sustainability

  1. Payout Ratio = 0.23
  2. Payout Ratio 5 Year Average = 0.31

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 2.15
  2. 5 Year History EPS Growth = 6.98
  3. ROE 5 Year Average = 21.14
  4. Current Ratio = 1.60
  5. Current Ratio 5 Year Average = 1.42
  6. Quick Ratio = 1.2
  7. Retention rate = 77%

Conclusion

In general, a great way to get into a stock at a price of your choosing is to sell puts at strikes you would not mind owning the stock at.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.EPS and Price Vs industry charts obtained from zacks.com. A major portion of the historical data used in this article was obtained from zacks.com. Earnings and growth estimates sourced from dailyfinace.com

Disclaimer: This list of stocks is meant to serve as a starting point. Please do not treat this as a buying list. It is imperative that you do your due diligence and then determine if any of the above plays meet with your risk tolerance levels. The Latin maxim caveat emptor applies-let the buyer beware

Source: Possible Long-Term Golden Opportunity: Goldcorp