logo
  Join        Login             Stock Quote

3 Bargain Stocks That Emerged From The Market's Slump

 April 30, 2012 07:33 AM
 


Volatility is back. The markets slumped badly at the end of last week and have rallied considerably higher thus far this week. From solid corporate earnings to tepid economic reports to deepening troubles in Europe, there's a whole lot of push and pull going on right now.

Consider this fact: The S&P 500 has fallen at least 1% on four occasions this month alone. It happened only once in March and not even once in February. That's actually good news for value investors: each sell-off has brought a fresh list of bargains, as the list of 52-week lows starts to grow larger.

This week, I've come across a handful of solid long-term businesses that have touched fresh 52-week lows in the past few trading sessions. I've been tracking these companies over the years, awaiting the moments when they temporarily fall out of favor. They're in the doghouse once again, and now look inexpensive in the context of their long-term track record.

1. Barrick Gold (NYSE: ABX)
This leading gold miner has bounced around between $45 and $55 for much of the past two years, but has recently fallen below support levels. My colleague Tim Begany wisely suggested investors dump this stock back in November, although the sell-off now looks complete. This stock is now looking a heck of a lot more appealing.

[Related -Cisco Systems, Inc. (NASDAQ:CSCO): What Cisco May Add To Next-Gen UCS?]

[Related -Citrix Systems, Inc. (NASDAQ:CTXS): A Look At Opportunities And Threats]


 
Begany correctly noted that Barrick's costs were spiraling, but it's even worse than he thought. At the time he wrote his article, Barrick's cash cost per ounce of gold was expected to have reached an all-time high of $482 in the fourth quarter, but the figure actually climbed to $505. Adding insult, management conceded that cash costs per ounce in 2012 would rise to at least $520 and perhaps as high as $560. (The company also mines copper at about $2 a pound.)

Yet with gold trading at around $1,640, Barrick is still generating solid profits: The company is likely to earn about $5 a share this year and $6 a share in 2013, assuming stable gold prices. Costs will remain a problem, but Barrick remains on track to boost output as its key mines hit their stride, which explains the rising earnings per share (EPS).


Next Page >>123
iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageHealth Net, Inc. (HNT): Potential to Be Huge Winners Says Bank of America

As of this keystroke, Health Net, Inc. (NYSE: HNT) shares are up around 4% on the day. The managed health read on...

article imageHomeAway, Inc. (AWAY) Q2 Earnings Preview: Top and Bottom Line Bullish Surprise?

HomeAway, Inc. (NASDAQ:AWAY) will report its financial results for the second quarter ended June 30, 2014 read on...

article imageAmazon.com, Inc. (AMZN) Q2 Earnings Preview: Missing on the Top and Bottom Lines, Again?

Amazon.com, Inc. (NASDAQ:AMZN) will release its second quarter financial results after market close on read on...

article imageFord Motor Company (F) Q2 Earnings Preview: Light on the Top Line?

Ford Motor Company (NYSE:F) will release its preliminary second quarter 2014 results at 6:30 a.m. EDT read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.