Barrick Gold Deja Vu

2011-03-01T11:30:00.000-08:00

    Barrick Gold (TSX/NY ABX) had been on a steady decline since its 52 week high of $55.99Cdn had been set during the first period of December 2010 as short sellers and profit takers put selling pressure on the stock. Six weeks later, 3 periods, and a $10.00 per share haircut; translated would equal an Apple MacBook White 13.3" for $918.95 after rebate with Free Shipping!, we see the beginning of the new uptrend which has gained back $7.00. Short covering combined with the return of the profit takers is now adding buying pressure; consequently Barrick Gold has returned to the Higher High/low list. .
What happened ? Same thing as last year; growth in earnings. On February 17, 2011 Barrick announced net earnings of $896 million, or $0.90US a share, versus $215 million, or $0.21 a share, a year earlier. The analysts tweaked their targets; some raising while others lowered. The highest being Scotia Capital's David Christie at $79.00US with the lowest set at $44.00US by Barclays' Peter Ward. The list is available at: http://www.analystcoverage.org/abx.htm . Mr Ward may have had his target achieved if Barrick had not acted as a spoiler by announcing their earnings. It would seem money moves the markets in the short run but fundamentals always win in the long run.
    If 2010 is any indication April to May will be very bright for Barrick's shareholders which should set a new higher base for the share price.

Precision Drilling Earnings Triggers 6 Targets Raised by Analysts

2011-02-12T16:07:00.000-08:00

Precision Drilling (NY PDS, TSX PD) announced Q4/10 revenue totaled $436 million VS. Q4/09's $286 million. Net earnings of $6 million or $0.02 compared to a net loss of $29 million or ($0.09) per share for Q4/09. Excluding a non-cash charge of $91 million ($0.29 per share), related to a long term debt refinancing, would have PDS's EPS at $0.31.
Six analysts raised their targets with the highest set at $13.00Cdn and lowest at $11.50Cdn. Raymond James' Andrew Bradford upgraded PDS to OUTPERFORM from MARKET PERFORM with a new target of $12.25Cdn. UBS's Chad Friess, who downgraded PDS on January 26, has the lowest target set at $11.50Cdn. Source: http://www.analystcoverage.org/pd_un.htm
PDS has consistently made our Higher "High/Low" lists without fail since we started monitoring it in September 2010. The latest period Jan 16 to Jan 31 has the high set at $10.54 Cdn and the low set at $9.65Cdn. The outstanding shares shorted on the TSX has increased to 9.29 million shares on Jan 31 from 1.64 million on Dec 31, 2010 which would indicate a strong support for the share price considering the recent news which lead to a new 52 week high of $11.03. One would also have to take into account the average volume traded is roughly 1 million shares per day. The NY outstanding shares shorted are only 1.59 million.

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Barrick Gold Deja Vu

Precision Drilling Earnings Triggers 6 Targets Raised by Analysts