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After sliding 61% YTD, Stifel Nicolaus gets around to downgrading Barrick Gold (ABX +2.6%)...

After sliding 61% YTD, Stifel Nicolaus gets around to downgrading Barrick Gold (ABX +2.6%) to Hold from Buy. The firm admits it should have moved sooner but expected a gold price bounce to allow a better exit price; the risks of continuing to wait could outweigh the rewards since it now expects gold to go lower before recovering in 6-12 months. The firm says ABX’s fortunes are linked to gold prices more than peers.
Comments (3)
  • maybe the noticed that Barrick levered up its balance sheet to buy Equinox minerals, a copper company, only to find that Equinox's production figures had been inflated. And maybe they noticed that the Chilean government has closed down the new mine high in the Andes on which Barrick has already spent billions of dollars. Maybe someone showed them the 6/24 report from Merrill Lynch which estimates Barrick's NAV at various gold prices: at $1200 gold, Barrick's NAV is $4.60; at $1100 gold, it's 50 cents; at $1000 gold it's Zero.
    9 Jul 2013, 12:03 PM Reply Like
  • us economy is still on sandy ground. dun trust the wall street corcodile, they hammer the gold price to snatch world's wealth in their dirty hands.
    9 Jul 2013, 02:36 PM Reply Like
  • they were waiting for a "bounce" all the way from $60 to go from buy to hold .... they were probably involved with the recent bond deal and had to wait.... ABX is getting interesting Id say!
    9 Jul 2013, 04:40 PM Reply Like
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