Looked at NG a couple of years ago and passed based on the valuation. NG got a lot cheaper today, but I'd have to do more work to see why Barrick is pulling out of this project.
July 26 (Bloomberg) -- NovaGold plunges as much as 33% on >3x avg. volume to lowest since Sept. 2009.
* ABX earlier said Donlin Gold (50% owned by NG) doesn’t meet investment criteria; won’t make decision to Build project “at this time"; ABX down as much as 8.3% post-earnings
* NG down 48% YTD, worst performer in XAU index YTD
* Among top holders of NG, according to Bloomberg data (as of 3/31, unless otherwise noted):
* Electrum Strategic Resources 19% (as of 3/19)
* Paulson & Co. 13% (as of 4/30)
* Tradewinds Global 4.3% (as of 5/31); holds 2% of ABX
* Baupost Group 3.6%
* Aletheia Research 3.2%
* Octavian Advisors 3.1%
* York Capital Mgmt 1.9%
* Tocqueville Asset Mgmt 1.9%
* Chilton Investment 1.5%; also holds 0.8% of ZNGA, which is down >40% post-earnings
* Blue Ridge Capital 1.3%
* NOTE: Paulson had losses in all funds in June, led by 7.9% drop in Advantage Plus Fund (down 16% this year); Paulson’s Gold Fund is down 23 this year;
Thursday, July 26, 2012
ECB June 2012 Monetary Developments
M1 and M3 growth rates are both up. Loans to private sector down. Annual growth rate of loans to non-financial corporations decreased to -0.6% in June.
Source: www.ecb.europa.eu/press/pdf/md/md1206.pdf
Source: www.ecb.europa.eu/press/pdf/md/md1206.pdf
U.S. ANALYST RATINGS: Upgrades, Downgrades, Initiations
UPGRADES:
* AllianceBernstein (AB) to neutral: BofA Merrill
* Canadian Pacific (CP) to outperform: BMO Capital
* Carter’s (CRI) to buy: Sterne, Agee
* Coach (COH) to overweight: Morgan Stanley
* FaceBook (FB) to buy: Pivotal Research
* FMC Technologies (FTI) to market perform: BMO Capital
* Gentiva Health (GTIV) to buy: Deutsche Bank
* LSI Corp. (LSI) to outperform: CLSA
* Lumber Liquidators (LL) to neutral: Janney
* Marvell Tech. (MRVL) to market outperform: JMP Securities
* Telefonica (TEF) to hold: Berenberg
DOWNGRADES:
* ArcelorMittal (MT) to hold: ING
* Avon Products (AVP) market perform: Wells Fargo
* Caterpillar (CAT) to market perform: Wells Fargo
* Chico’s (CHS) to underweight: Morgan Stanley
* Cliffs Natural (CLF) cut to market perform: FBR
* CR Bard (BCR) to hold: Jefferies
* Eastman Chemical (EMN) buy: Lazard Capital
* Ferro (FOE) to neutral: Credit Suisse
* Groupon (GRPN) to equal-weight: Evercore
* International Game Tech. (GT) to netural: UBS
* Intersil (ISIL) to hold: Needham
* Lorillard (LO) to neutral: Citigroup
* Lincoln Educational (LINC) to underperform: BofA Merrill
* MeadWestvaco (MWV) to market perform: BMO
* MGIC Investment (MTG) to neutral: Macquarie
* Potash (POT) to underperform: National Bank
* Quality Systems (QSII) to neutral: JPMorgan
* Radian (RDN) to neutral: Macquarie
* Ross Stores (ROST) to neutral: Nomura
* Seadrill (SDRL) to hold: Danske Markets
* TJX (TJX) to neutral: Nomura
* Weatherford (WFT) to sell: SocGen
* Wellpoint (WLP) to market perform: BMO
* Varian Medical (VAR) to hold: Cantor
* Zynga (ZNGA) to neutral: BTIG
* Zynga (ZNGA) to neutral: JPMorgan
INITIATIONS:
* Avon Products (AVP) market perform: Wells Fargo
* Eastman Chemical (EMN) buy: Lazard Capital
* Horsehead Holding (ZINC) buy: CRT
* Solta Medical (SLTM) buy: ThinkEquity
* Urban Outfitters (URBN) buy: CLS
* AllianceBernstein (AB) to neutral: BofA Merrill
* Canadian Pacific (CP) to outperform: BMO Capital
* Carter’s (CRI) to buy: Sterne, Agee
* Coach (COH) to overweight: Morgan Stanley
* FaceBook (FB) to buy: Pivotal Research
* FMC Technologies (FTI) to market perform: BMO Capital
* Gentiva Health (GTIV) to buy: Deutsche Bank
* LSI Corp. (LSI) to outperform: CLSA
* Lumber Liquidators (LL) to neutral: Janney
* Marvell Tech. (MRVL) to market outperform: JMP Securities
* Telefonica (TEF) to hold: Berenberg
DOWNGRADES:
* ArcelorMittal (MT) to hold: ING
* Avon Products (AVP) market perform: Wells Fargo
* Caterpillar (CAT) to market perform: Wells Fargo
* Chico’s (CHS) to underweight: Morgan Stanley
* Cliffs Natural (CLF) cut to market perform: FBR
* CR Bard (BCR) to hold: Jefferies
* Eastman Chemical (EMN) buy: Lazard Capital
* Ferro (FOE) to neutral: Credit Suisse
* Groupon (GRPN) to equal-weight: Evercore
* International Game Tech. (GT) to netural: UBS
* Intersil (ISIL) to hold: Needham
* Lorillard (LO) to neutral: Citigroup
* Lincoln Educational (LINC) to underperform: BofA Merrill
* MeadWestvaco (MWV) to market perform: BMO
* MGIC Investment (MTG) to neutral: Macquarie
* Potash (POT) to underperform: National Bank
* Quality Systems (QSII) to neutral: JPMorgan
* Radian (RDN) to neutral: Macquarie
* Ross Stores (ROST) to neutral: Nomura
* Seadrill (SDRL) to hold: Danske Markets
* TJX (TJX) to neutral: Nomura
* Weatherford (WFT) to sell: SocGen
* Wellpoint (WLP) to market perform: BMO
* Varian Medical (VAR) to hold: Cantor
* Zynga (ZNGA) to neutral: BTIG
* Zynga (ZNGA) to neutral: JPMorgan
INITIATIONS:
* Avon Products (AVP) market perform: Wells Fargo
* Eastman Chemical (EMN) buy: Lazard Capital
* Horsehead Holding (ZINC) buy: CRT
* Solta Medical (SLTM) buy: ThinkEquity
* Urban Outfitters (URBN) buy: CLS
Wednesday, July 25, 2012
This is what happens during a deleveraging....
Yields fall as the real cost of debt becomes more expensive. Creditors are paid back in currency that is worth more.
U.S. 30-Year Muni-Bond Yields Fall to Lowest Rate Since 2009
Prem Watson ups his stake in RIM while the New York Times bows out of Blackberry app
Fairfax's Prem Watson, also known as the Canada's Warren Buffet, doubled down on his position in Research in Motion a couple of weeks ago while firms like Google and the New York Times have been dropping support for their apps on Blackberry's platform. Value trap or value play? Only time will tell, but I'd look at Nokia instead of RIMM.
Disclosure: I am long Nokia (NOK)
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