here u go
2/11/2002 10:40:23 AM
Prudential says 'sell' Newmont
Shares of Newmont Mining (NEM) are sliding $1.14, or 4.6 percent, to $23.86
after Analyst Jon Tumazos at Prudential Securities downgraded the stock to
"sell" from "hold," and cut his price target to $10 from $21. Tumazos thinks
that several of the deposits that Newmont classifies as reserves or resources
"appear suspect," and he worries that the company might buy out its partner or
invest capital to build large mines that produce no gold at a profit.
Meanwhile, he raised his earnings estimates for the company given the recent
surge in gold prices. He also lifted his gold price estimate for both 2002 and
2003 to $300 from $270 and $290, respectively. "We attribute the recent
increase in investment interest to poor returns on cash, bond and stocks
stemming from 1.7-percent short-term rates, lousy corporate earnings, and
probably shorter-term accounting anxieties. Meanwhile, Newmont's decline is
helping to trigger a pullback in the CBOE Gold Index ($GOX), which is sliding
4.6 percent. As of Friday's close, the sector tracker had surged 25 percent
since the end of last year. Among Newmont's peers, Placer Dome (PDG) is
slipping 33 cents to $12.98 and Barrick Gold (ABX) is giving up 62 cents to
$18.45.
and.............................
2/11/2002 10:50:27 AM
Gold shares decline; NEM downgraded
The CBOE Gold Index ($GOX) slid 4.5 percent after tacking on 8.5 percent last
week and gold futures fell over $5 to $299.30 in recent dealings. Among the
GOX's components, Newmont Mining (NEM) fumbled 4.4 percent following a
downgrade from Prudential to a "sell," with the firm's price target on the
stock lowered to $10 from $21. Prudential believes the company's earnings are
not sustainable and expects reserves to fall another 8 percent in 2002 and 9
percent in 2003 following a 10.5 percent drop in 2001. Prudential said it upped
its earnings estimate on the company to reflect the recent rally in gold while
acknowledging that the upside may lose steam as accounting standards tighten. |
