May 20, 2013
Stocks Under $10: How Overvalued is Molycorp?
 Molycorp (MCP) – ($6.76) has recently been downgraded to a Sell rating according to ValuEngine with fair value at 1.75, which makes the stock 300.0% overvalued. The one-year price target is $6.25. ValuEngine Profile – “Molycorp, Inc. produces rare earth oxide (REO) in the Western hemisphere. The Company expects to become the most integrated producers of rare earth products, including oxides, metals, alloys and magnets. The rare earths are critical inputs in existing and emerging applications including: clean energy technologies, such as hybrid and electric vehicles and wind power turbines; multiple high-tech uses, including fiber optics, lasers and hard disk drives; numerous defense applications, such as guidance and control systems and global positioning systems; and advanced water treatment technology for use in industrial, military and outdoor recreation applications. Molycorp, Inc. is based in Greenwood Village, Colorado.” Analysis – The daily (more)…
May 10, 2013
Exclusive Interview: Adrian Day Shares His Insight on Investing in Mining Companies
 Equities.com recently spoke with Adrian Day of Adrian Day Asset Management to discuss his thoughts on the current natural resource market from truly global perspective, as well as the many different ways that investors can play the mining sector. As a renowned financial expert in both global investing and the natural resources sector, Day’s perspective is worth its weight in gold. Day will be joining a roster of notable and influential speakers at the upcoming New York Metals and Minerals Investment Conference on May 13-14, 2013 at New York Marriott Marquis. EQ: I’d like to start off by discussing Adrian Day Asset Management. Your firm focuses on three pillars of global, value, and resources. Can you talk about that and how that’s integral to the various services you provide? Day: Everything we do is globally oriented and value oriented, and we tend (more)…
May 1, 2013
Exclusive Interview: Peter Spina on Gold and Silver Investing
 For gold and silver investors, understanding the underlying fundamentals and economic factors that drive the demand and price direction of the precious metals is critically essential to the success of their portfolio. Peter Spina, the founder and CEO of GoldSeek.com and SilverSeek.com, understood this right around the time when technology was becoming more accessible to everyday people, and at the same time, gold and silver were increasingly becoming viewed as investment assets. With over 15 years of experience investing in gold and silver, and the mining companies in the space, Spina spends much of his time researching, consulting and investing into gold and silver stocks with a primary focus on micro-caps and junior mining/exploration companies. Equities.com spoke with Spina to get his thoughts on where gold and silver are headed, as well as to learn more about his sites. Spina (more)…
April 18, 2013
Nucor Profits Beat Estimates Despite Stumbling 42 Percent in First Quarter
 Steel product manufacturer Nucor Corp. (NUE) reported Thursday that its net profits plunged in the first quarter, hamstrung by lower sales volumes and steel prices, although the nation’s second largest steelmaker by production still managed to top analyst predictions. Charlotte, North Carolina-based Nucor said it generated $4.55 billion in sales during the first quarter of 2013, down by 10 percent from $5.07 billion in Q1 2012. Net profit for the quarter was $84.4 million, or 26 cents per share, 42 percent lower than $145.1 million, or 46 cents per share, in the year prior quarter. Wall Street was expecting the company to post earnings of 24 cents per share on $4.54 billion in revenue. Average sales per down fell by 7 percent compared to last year’s quarter and 2 percent from the fourth quarter 0f 2012. Total tons shipped decreased (more)…
April 16, 2013
One Resource Stock Bucking the Trend
 How many of the resource stocks in your portfolio have a chart like this the past 6 months?! Not only was Zenyatta Ventures (ZEN/ZENYF) the best performing stock on the Toronto Stock Exchange last year, but what if I told you the party is just getting started? You can see from the Gold Investment Letter blog that we recommended ZEN to subscribers last April in the .30’s. We also pounded the table to buy shares last August when the stock was under 20 cents briefly and have had a consistent and very bullish message all the way up (we’re up over 1,000% since August-people thought our $2-5 price target was crazy!). Frankly, I think this current chart is now again a screaming buy and looks to me like it’s about ready to take off once again. Here’s a summary for new (more)…
April 10, 2013
Chilean Court Suspends Work on Barrick’s Pascua-Lama Mine, Shares Hit 4 Year Low
 Shares of Barrick Gold Corp. (ABX) have fallen Wednesday to their lowest levels since March 2009 after a Chilean court ordered construction to be halted on Barrick’s massive Pascua-Lama mine for environmental reasons. The project, which straddles the border between Chile and Argentina, was launched in 2009. While most of the infrastructure is in Argentina, the majority of the huge, open-pit mine is in Chile, the area of concern for potential damage to the Estrecho River. The court order stems from complaints filed with the Court of Appeals of Copiapo, Chile by indigenous communities claiming potential damage to their water supplies and pollution of glaciers. The project is under Barrick’s umbrella through its Chilean subsidiary, Compania Minera Nevada, the company that is named in the case along with a local regulatory agency. Toronto, Canada-based Barrick has put a projected total (more)…
April 9, 2013
Alcoa Rings In Earnings Season with Profit Growth and Sales Shrinkage
 The latest earnings season is officially underway Monday evening with Alcoa, Inc. (AA), the largest U.S. aluminum producer by sales and Dow component, reporting first-quarter profit that topped analyst expectations, although revenue slipped below predictions. The company blamed the lower sales largely because of lower London Metal Exchange aluminum prices and the company slowing its European primary metals production. For the first quarter of 2013, ended March 31, the New York-based company reported revenue of $5.83 billion, down 2.9 percent from last year’s $6.01 billion. Net income tallied $149 million, or 13 cents per share, up from $94 million, or 9 cents per share in the first quarter of 2012. Excluding special items, net income was $121 million, or 11 cents per share, compared to $105 million, or 10 cents per share in the year prior quarter. Analysts were predicting (more)…
Alcoa Opens Earnings Season with More Profits and Less Revenue
 The aluminum and primary metals supplier Alcoa (AA) opened the first quarter of 2013’s earnings report season with a mixed performance. Reporting after the close of the regular trading day on Monday, Alcoa reported that for Q1, net income increased to $149 million, or 0.13 cents per share, on revenue of $5.83 billion- a $55 million/$0.04 per share increase in profits on the prior-year period, but a 3 percent drop in revenue (down from $6.01 billion) in the same time-frame. Furthermore, analyst expectations had expected earnings $0.08 per share on revenue of $5.88 billion. The better-than-expected profits figures are the result, to no small extent, of Q1 2013’s increase in auto-sales, the industry’s best quarter since 2007. The month of March alone saw sales of light vehicles increase by almost 3.5 percent for the best single month since 2007 as (more)…
April 1, 2013
4 Gold and Silver Plays for an Ailing Precious Metals Market
 Gold and Silver have been taking a drubbing lately. The iShares Silver Trust ETF (SLV) has lost 16.70 percent in the last six months, and SPDR Gold Shares ETF (GLD) has lost almost 10 percent. There are a number of reasons for which gold and silver are in this position, and the steep upward trajectory taken by the bull market since late January would have to rank among the principal ones. The Cyprus situation may also be more than a blip on the radar. Since the European Union has signaled its willingness to keep the ship from falling apart at all costs, and especially since the crisis has been “resolved” for the immediate future, the rush to gold and silver that would have otherwise resulted from the threat of such a massive economic shockwave was averted. There are a host (more)…
March 27, 2013
Goldcorp and Other Major Gold Plays at a Technical Bottom?
 Gold prices are finding themselves stuck in a downward channel now since hitting $1798 per troy ounce in October 2012. A series of lower-highs and lower-lows has followed, forming a steady pattern as part of a longer-term trend since gold prices peaked at $1,923.70 per ounce in September 2011. In Wednesday trading, gold bullion was off by about half a percent at $1,598.10. Gold prices have only closed above the 50-day moving average (blue line on charts below) on three occasions since breaking back below it on September 23. Although prices have climbed all month, as they approached the key moving average again at the end of last week, prices are once again getting repelled downward. It looks like trying to push two like magnets together. If the slide continues, gold will find itself back down on a firm area (more)…
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