Barrick Gold ever going to rally?

Spooly

I swear I hate this stock! 35% increase in profits today...... stock still lost value!


I hate this stock... I hate this stock.... I hate this stock.....

roadrunner

Barrick moves with the balance of the gold miners (ie GDX or XAU). The thing about earnings season during a consolidation is that a good report is pretty much negated.
And a bad one only accentuates the decline. All one can do is go with the major flow. Based on this daily chart the miners in general peaked a week or so ago. Hanging
around for earnings season was just asking for trouble, regardless of the news. Bands were stretched to extremes and indicators were peaked and rolling over. Volume
had been falling off steadily even as miners peaked. Being THE heavyweight of the gold miners, Barrick has a lot of baggage to cart around. Just keeping its reserves from
depleting away is a major concern. Stocks like Barrick are probably best to be sold after runs, and bought back near bottoms. Since last August the miners have cycled up and
then down in 5 waves, each was worth playing. Worthwhile juniors and explorers are probably better bets for holding long term. The hard part is identifying them. It's not easy.

gdx chart
On the good side, Barrick fell far enough to clear that gap at 47.5. Helps clear the path a bit.

Analysts who rate stocks like Barrick still are targeting much lower gold prices by end of year so that's not helping the outlook to get fresh faces into miners. On top of that, miners
have been having trouble keeping costs contained and keeping production on target. Didn't Barrick lower it's 2011 production forecast earlier this year?

roadrunner

cohodk

In April, ABX announced its plans to acquire a large copper mine. The stock fell 20% over the next few weeks. The market thinks its overpaying, as do I.

However, eventually it will reach a price that will be attractive.

roadrunner

Good point about Barrick's copper buy Cohodk. I had forgot about that.

All the miners fell from April into May. Barrick actually hung on a bit longer. It seems with each new year Barrick comes up with another surprise that puts them
back into the also-rans even with their huge production and asset base. Copper isn't gold and will not respond to currency/debt/default issues the same as "gold."

(edited gold for copper at end of last sentence)

roadrunner

cohodk

<< <i>Good point about Barrick's copper buy Cohodk. I had forgot about that.

All the miners fell from April into May. Barrick actually hung on a bit longer. It seems with each new year Barrick comes up with another surprise that puts them
back into the also-rans even with their huge production and asset base. Copper isn't gold and will not respond to currency/debt/default issues the same as copper.

roadrunner >>



Yeah, its really a shame. Otherwise its a pretty darn good company with attractive assets.