24/7 Wall St. » CDE

24/7 Wall St. Closing Bell (FSLR, PEP, PG, ILMN, CCL, ANV, AWR, BBEP, CDE, DISH, LPX, TSN, HFC, CHTR, DMD, HL, OMX, THC, WEN, DIS, VRTX, CTSH, BSFT)

Paul Ausick — Mon, 07 May 2012 20:08:20 +0000

The major US stock indexes opened lower this morning following a weekend of elections in Europe. A new Socialist party president in France and a still very cloudy future in Greece have left investors in a quandry. We have more coverage here on the French election and here on the election in Greece. By the last hour of trading, shares had recovered nearly all of the early losses and the three major indexes are either slightly positive or on the way to positive territory. The US dollar index rose today, now up 0.09% at 79.573. The GSCI commodity index is down about -2.3% at 653.60, with commodities mixed on the slightly stronger dollar. WTI crude oil closed down -0.6% at $97.94/barrel and Brent crude trades down -0.08% at $113.09/barrel. Gold settled down -0.4% today, at $1,639.10/ounce.

The unofficial closing bells put the DJIA down nearly 30 points to 13,008.53 (-0.23%), the NASDAQ rose less than 2 points (0.05%) to 2,957.76, and the S&P 500 rose 0.48% or less than 1 point to 1,369.58.

There were several analyst upgrades and downgrades today, including First Solar Inc. (NASDAQ: FSLR) cut to ‘neutral’ at Argus; Pepsico Inc. (NYSE: PEP) raised to ‘overweight’ at Morgan Stanley; Procter & Gamble (NYSE: PG) cut to ‘market perform’ at Wells Fargo; Illumina Inc. (NASDAQ: ILMN) raised to ‘outperform’ with a price target of $55 at Credit Suisse; and Carnival Corp. (NYSE: CCL) cut to ‘neutral’ at Goldman Sachs.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Allied Nevada Gold Corp. (AMEX: ANV) is down about -10% at $25.59 after posting a new 52-week low of $25.37 earlier today; American States Water Co. (NYSE: AWR) is up 3.6% at $37.09; Breitburn Energy Partners L.P. (NASDAQ: BBEP) is down -2.4% at $17.54; Coeur d’Alene Mines Corp. (NYSE: CDE) is down -4.1% at $18.99 after posting a new 52-week low of $18.71; Dish Network Corp. (NASDAQ: DISH) is down -0.93% at $31.02; Louisiana Pacific Corp. (NYSE: LPX) is up 5.9% at $9.49; Tyson Foods Inc. (NYSE: TSN) is up 3.4% at $18.65; and HollyFrontier Corp. (NYSE: HFC) is down -2.4% at $28.82 (more coverage here).

On Tuesday we are scheduled to get earnings from Charter Communications Inc. (NASDAQ: CHTR), Demand Media Inc. (NYSE: DMD), Hecla Mining Co. (NYSE: HL), OfficeMax Inc. (NYSE: OMX), Tenet Healthcare Corp. (NYSE: THC), The Wendy’s Co. (NYSE: WEN), and Walt Disney Co. (NYSE: DIS).

Other standouts from today include the following stocks:

Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) is up about 55% at $58.05. The company’s cystic fibrosis drug study showed significant positive results. More coverage here.

Cognizant Technology Solutions Corp. (NASDAQ: CTSH) is down more than -XX% at $XX. The IT-outsourcing firm showed good results, but guidance was weak. More coverage here.

BroadSoft Inc. (NASDAQ: BSFT) is down -17.6% at $33.68. The communications software maker posted good earnings, but followed that with soft guidance for the second quarter.

Stay tuned for Tuesday. Richmond Fed President Jeffrey Lacker and Dallas Fed President Richard Fisher are giving speeches. We have noted the following events on the schedule (all times Eastern):

7:30 a.m. – NFIB Small Business optimism index
11:30 a.m. – 4-week bill auction
1:00 p.m. – 3-year note auction

Paul Ausick

Filed under: General Tagged: ANV, AWR, BBEP, BSFT, CCL, CDE, CHTR, CTSH, DIS, DISH, DMD, FSLR, HFC, HL, ILMN, LPX, OMX, PEP, PG, THC, TSN, VRTX, WEN

24/7 Wall St. Closing Bell (K, ALU, TOL, PAY, YRCW, GRPN, TESO, BSFT, CCJ,CDE,KWK, NAT, FRPT, ADPI, TKLC, OVTI, DMND)

Paul Ausick — Mon, 07 Nov 2011 21:09:51 +0000

Markets opened up a bit this morning, but by 10:00 a.m. equities had turned back down, with the DJIA sliding down nearly -200 points before rallying back to its opening mark in the early afternoon. Shares simply couldn’t get any traction in any sector, with heath care stocks losing the least. Crude oil rose to just above $95/barrel, and the firing of two California state oil & gas officials by the governor has raised hopes for speedier permitting in that state, where an estimated trove of 15 billion barrels of shale oil is at stake. In the last half hour of trading, equities rebounded on their way to a gain for the day.

The unofficial closing bells put the DJIA up more than 85 points to 12,068.39 (0.71%), the NASDAQ rose more than 9 points (0.34%) to 2,695.25, and the S&P 500 rose 0.63% or nearly 8 points to 1,261.12.

There were several analyst upgrades and downgrades today, including Kellogg Co. (NYSE: K) cut to ‘market perform’ at William Blair. Other changes included Alcatel-Lucent SA cut to ‘sell’ at Citigroup; Toll Brothers, Inc. (NYSE: TOL) raised to ‘buy’ at Citigroup; VeriFone Systems Inc. (NYSE: PAY) started at ‘buy’ at Citigroupl; YRC Worldwide, Inc. (NASDAQ: YRCW) maintained at ‘underperform’ with a price target of $0.05 at Credit Suisse; and Groupon Inc. (NASDAQ: GRPN) started at ‘buy’ at Benchmark.

Here are today’s big post-earnings news reactions with prices during the last half-hour of trading: Tesco Corp. (NASDAQ: TESO) is down about -18%, at $13.34; BroadSoft, Inc. (NASDAQ: BSFT) is down less than -0.5%%, at $36.28; Cameco Corp. (NYSE: CCJ) is down nearly -7%, at $20.00; Coeur d’Alene Mines Corp. (NYSE: CDE) is up nearly 8%, at $29.42; Quicksilver Resources Inc. (NYSE: KWK) is down more than -9%, at $7.62; and Nordic American Tankers Ltd. (NYSE: NAT) is down nearly -4%, at $13.64.

Several other standouts from today are as follows…

Force Protection, Inc. (NASDAQ: FRPT) is up more than 30%, at $5.50. The armored truck maker is being acquired by General Dynamics Corp. (NYSE: GD for $5.52/share in a deal worth $360 million.

American Dental Partners, Inc. (NASDAQ: ADPI) is up nearly 79%, to $18.57. The company is being acquired by a private equity firm for $317 million, or $19/share, an 83% premium to Friday’s closing price.

Tekelec (NASDAQ: TKLC) is up more than 13%, at $11.20. The telecom equipment maker is being acquired by a private equity firm for about $760 million.

OmniVision Technologies, Inc. (NASDAQ: OVTI) is down nearly -18%, at $14.23. The company revised its outlook to include a sharp drop in fourth-quarter revenues. Shares are down about -50% since the beginning of the calendar year.

Diamond Foods, Inc. (NASDAQ: DMND) is down about -15.5%, at $39.21, after posting a new 52-week low of $38.45 earlier in the day. The company’s stock continues to get beaten up due to a delay in its acquisition of the Pringles business from Proctor & Gamble (NYSE: PG) and an investigation into payments to walnut growers.

Stay tuned for Tuesday. Philadelphia Federal Reserve president Charles Plosser is giving a speech in the morning and Minneapolis Federal Reserve president Narayana Kocherlakota gives a speech in the afternoon. We have noted the following events (all times Eastern):

7:45 a.m. – International Council of Shopping Centers-Goldman Sachs same-store sales
8:55 a.m. – Redbook weekly report on retail sales
1:00 p.m. – US Treasury 3-year note auction

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: ADPI, ALU, BSFT, CCJ, CDE, DMND, FRPT, GRPN, K, KWK, NAT, OVTI, PAY, TESO, TKLC, TOL, YRCW

Commodities Watch: Silver Miner Misses Targets; Food Producer Also Misses, Raises Prices; Copper Prices Recovering (CDE, SIL, SLV, TSN, SFD, FCX, JJC)

Administrator — Mon, 09 May 2011 18:31:25 +0000

Today’s commodities watch looks at a silver miner’s and a food producer’s quarterly earnings. And a quick look at how copper is coming back today.

Silver and gold miner Coeur d’Alene Mines Corp. (NYSE: CDE) reported record sales, production, and cash flow for the first quarter of 2011. But analysts were expecting more, and Coeur’s shares are taking a dive following the earnings report.

Coeur reported revenue of $199.6 million, compared with expectations of $234 million, and adjusted EPS of $0.42, compared with expectations of $0.61. The company produced 4.1 million ounces of silver in the quarter and more than 53,000 ounces of gold. The realized price for silver was $31.27/ounce and for gold, $1,374/ounce.

Coeur’s problem was costs. Total production cost/ounce for gold was $1,384.30. For silver, total production cost was $19.02/ounce. When production costs for gold are $10/ounce higher than the realized price, that will have an nasty impact on revenue. And the total production costs for silver are more than 60% of the company’s realized price for the gray metal.

The company’s shares are down about -4% in the early afternoon, to $26.63, within a 52-week range of $13.96-$37.59. The Global X Silver Miners ETF (NYSE: SIL) is up more than 2%, to $25.30, within a 52-week range of $12.90-$31.34. Silver itself is back up today, after a significant correction last week. Silver futures are trading at $37.22, up about 5.5%. The iShares Silver Trust (NYSE: SLV) is also up about 5.5%, to $36.40, in a 52-week range of $16.94-$48.35.

Food producer Tyson Foods, Inc. (NYSE: TSN) reported flat earnings this morning and the shares are taking a beating on a drop in operating margin in its chicken segment from 4.6% in the same period a year ago to 1.4% this year.

Tyson got hit with rising feed costs that also lowered its beef segment margins from 4.5% a year ago to 2.8% this year. Only its pork business grew, with margins rising from 6.3% a year ago to $10.5% this year. Unfortunately, pork provides just 17% of Tyson’s revenue, and the company doesn’t expect margins in its pork group to stay at their current elevated levels for the rest of the year.

Tyson will raise prices to help offset its increasing costs for feed, but the company is expecting to pay about $500 million more for feed in 2011 than it did in 2010. Still, the company expects to generate more than $32 billion in revenue in fiscal 2011 due primarily to higher prices.

Competitor Smithfield Foods Inc. (NYSE: SFD) is expected topost EPS for its fourth quarter ended in April of $0.77 on revenue of $3.22 billion. But Smithfield shares are down today on Tyson’s report. Smithfield shares are down about -3%, at $21.24, within a 52-week range of $13.34-$24.93. Tyson’s shares are down -6%, to $17.75, in a 52-week range of $14.59-$20.12.

Finally, copper prices are also rising again, back above $4/pound. Copper has fallen from highs around $4.60/pound, but fundamentals still point to a demand shortfall primarily due to projected demand from China. Freeport-McMoran Copper & Gold Inc. (NYSE: FCX) is up more than 2.5%, to $51.47, within a 52-week range of $28.36-$61.35. The iPath DJ-UBS Copper Total Return Sub-Index ETN (NYSE: JJC) is up more than 1.5%, to $53.15, with a 52-week range of $36.60-$61.69.

Paul Ausick

Filed under: Agriculture, Commodities, Metals Tagged: CDE, FCX, JJC, SFD, SIL, SLV, TSN

Gold Trading: More Gold Mining Mergers Coming! (GDXJ, NEM, FRG, ANV, HL, GRS, CDE, GLD)

Administrator — Thu, 03 Feb 2011 20:02:29 +0000

Today’s action is showing a very favorable move to Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) after news that Newmont Mining Corporation (NYSE: NEM) is acquiring Fronteer Gold Inc. (AMEX: FRG). The $2.3 billion deal compared to Newmont’s $27+ billion market cap. This has many of the junior miners that are in production on the move for anticipation that more gold mining mergers will be forthcoming.

Fronteer has a 2.7% weighting in the Market Vectors Junior Gold Miners ETF. Other components are on the move as well.

Allied Nevada Gold Corp. (AMEX: ANV) is up 4% at $28.48 on just under 800,000 shares; its 52-week range is $11.57 to $29.05.

Hecla Mining Co. (NYSE: HL) up 5.3% at $9.71, yet volume is only 8.9 million shares; its 52-week range is $4.27 to $11.56.

Gammon Gold, Inc. (NYSE: GRS) is up 4.3% at $8.17 on just under 1.4 million shares; its 52-week range is $5.09 to $10.47.

Coeur d`Alene Mines Corporation (NYSE: CDE) is up only 1.3% at $24.83 on about 1.6 million shares; its 52-week range is $13.41 to $28.20.

The hope here is a simple one, but it stands out against against gold the metal today. Spot gold is up about 1.4% at $1352.12 per ounce, while the SPDR Gold Shares (NYSE: GLD) is up about 1.2% at $131.90. The hope is that more gold mining acquisitions will come. It has actually been surprising at just how few deals there have been. Now that many of these stocks have pulled back so much it may be time to look at the biggest bargains that are off the most.

JON C. OGG

Filed under: Commodities, Luxury, Mergers and Buy Outs, Metals Tagged: ANV, CDE, FRG, GDXJ, GLD, GRS, HL, NEM

Silver Miner’s Good News from South America (PAAS, CDE, HL, SLW, SLV)

Administrator — Wed, 01 Dec 2010 15:18:47 +0000

Canadian-based silver miner Pan American Silver Corp. (NASDAQ: PAAS) has released a report on its Navidad project in Argentina, providing details on a preliminary assessment of the project’s viability. The company primarily mines silver, but won’t turn its back on gold, lead, or other incidental minerals. The company’s share price has risen about 40% in the past year, significantly higher than Coeur d’Alene Mines Corp. (NYSE: CDE) and a bit more than Hecla Mining Co. (NYSE: HL). It trails far behind silver mining darling Silver Wheaton Corp. (NYSE: SLW), which has seen its share price more than double on the back of the strong interest in silver. The iShares Silver Trust ETF (NYSE: SLV) has also seen its share price rise some 40% in the past year.

Pan American’s Navidad project has been estimated to contain 632 million ounces of silver with another 119 million ounces possible. The deposit also contains more than 3 billion pounds of lead.

The company estimates that annual production will average about 19.8 million ounces of silver at a cash cost of $6.03/ounce during the first five years of mining. The production life of the mine is estimated to be 17 years, and total estimated production totals 275.5 million ounces at an average cost per ounce of $6.96 over the full live of the mine.

The production figures are considerably better than 2009 estimates before Pan American bought Aquiline Resources, the project’s former owner.

Pan American estimates that pre-production construction costs will total about $760 million, and that sustaining capital costs will total about $161 million over the mine’s 17-year life.

The company also expects to deliver 1 million ounces of silver to Silver Wheaton as the result of an agreement entered into by previous owners. This so-called “silver stream” means that Silver Wheaton buys the silver before it is mined, reducing mining costs — in Silver Wheaton’s case to a negative production cost — and allowing the buyer to move more volume than the actual mining company.

Pan American shares are up a little more than 1% in early trading this morning, as are Silver Wheaton shares. The iShares Silver Trust ETF is up a bit less than 1%.

Paul Ausick

Filed under: International Markets, Metals Tagged: CDE, HL, PAAS, SLV, SLW

Coeur d’Alene in Silver: Reverse Split and CreditWatch (CDE)

247wallst — Tue, 19 May 2009 13:27:33 +0000

Coeur d’Alene Mines Corp. (NYSE: CDE) has announced a 1-for-10 reverse stock split, which will be effective on May 26, 2009. The shares will trade on the NYSE on a split-adjusted basis beginning the next day, and a few days later on the Toronto exchange.

The reverse split reduces the number shares outstanding from more than 686 million to about 68.63 million.

Standard & Poor’s Ratings put Coeur on CreditWatch with positive implications. The company’s credit rating, ‘CCC’, reflects S&P’s “assessment that near-term operating cash flow generation will likely increase due to higher metal volumes and continued favorable gold and silver prices.”

S&P expects Coeur to need to raise additional capital to fund its 2009 capital spending program. Although S&P doesn’t say so directly, asset sales are likely to be part of the mix. Coeur’s CFO pooh-poohed that possibility, saying that the company’s $38 million in cash on hand and expected operating cash flow of $100 million is plenty.

Coeur shares are trading up about 1.5% in pre-market, at $1.37. The 52-week trading range is $0.36-$3.48, with average daily trading volume of more than 10 million shares.

Paul Ausick
May 19, 2009

Posted in Commodities, Metals Tagged: CDE

The 52-Week Low Club (CDE)(SSCC)(YRC)(BC)

247wallst — Mon, 20 Oct 2008 14:51:09 +0000

Brunswick (BC) Moody’s downgrades to junk because of falling consumer spending and company’s financials. Drops to $3.80 from 52-week high of $22.85.

Coeur d’Alene Mines (CDE) Sells new convertible note. Metals stocks not having their best day. Falls to $.82 from 52-week high of $5.18.

Smurfit-Stone Container (SSCC) Goldman Sachs warns paper company shares may decline on week product demand. Moves off to $1.06 from 52-week high of $13.56.

YRC Worldwide (YRC) Issues new shares to pay debt. Sells down to $3.51 from 52-week high of $28.15.

Douglas A. McIntyre

Posted in HI/LOW Tagged: BC, CDE, SSCC, YRC

The 52-Week Low Club 10/2/2008 (GGP)(MOS)(POT)(WFT)(STLD)(AAPL)(EBAY)(YHOO)

247wallst — Thu, 02 Oct 2008 15:00:54 +0000

General Growth Properties (GGP) S&P cuts ratings on growth concerns. Falls to $7.25 from 52-week high of $57.84.

Mosaic (MOS) Fiscal quarter earnings miss mark. Drops to $39.50 from 52-week high of $163.25.

Potash Corporation (POT) Fertilizer company hit by downgrade and falling grain prices. Plunges to $93.65 from 52-week high of $241.62.

Coeur d’Alene Mines (CDE) Analyst downgrade. Sells down to $1.11 from 52-week high of $5.18.

Weatherford International (WFT) Oil services hit by falling crude prices. Dips off to $18.42 from 52-week high of $49.98.

Steel Dynamics (STLD) Buyer pull back from steel companies. Shares fall to $13 from 52-week high of $40.92.

Apple (AAPL) Consumer spending concerns. Runs down to $100 from 52-week high of $202.96.

Ebay (EBAY) Will holiday spending be hit by the recession? Off to $18.93 from 52-week high of $40.73.

Yahoo! (YHOO) Internet ad fears. Down to $15.61 from 52-week high of $34.08.

Douglas A. McIntyre

Posted in HI/LOW Tagged: CDE, EBAY, GGP, MOS, POT, STLD, WFT, YHOO

The 52-Week Low Club 9/2/1008 (CDE)(NFX)(MDR)(INGN)(HERO)(FLEX)

247wallst — Tue, 02 Sep 2008 14:59:01 +0000

Coeur d’Alene Mines (CDE) Bad day for commodities stocks. Drifts down to $1.62 from 52-week high of $5.18

Newfield Exploration (NFX) Crude down $6. Bad day for oil exploration stocks. Falls to $39.98 from 52-week high of $69.77.

McDermott International (MDR) Oil and gas equipment supplier. Drops to $31.14 from 52-week high of $67.14.

Introgen Therapeutics (INGN) FDA turns down treatment application. Falls to $.50 from 52-week high of $4.85.

Hercules Offshore (HERO) Caught by collapsing oil prices. Sells down to $19.80 from 52-week high of $39.47.

Flextronics (FLEX) Concerns about rising short interest? Drops to $8.45 from 52-week high of $13.60.

Douglas A. McIntyre

The 52-Week Low Club 8/11/2008 (SIRF)(CDE)(AU)(BWTR)

247wallst — Mon, 11 Aug 2008 14:47:56 +0000

Coeur d’Alene Mines (CDE) Faces bad earnings and falling metals prices. Drops to $1.69 from 52-week high of $5.18.

Anglogold Ashanti (AU) Metals stocks down. Slips to $25.68 against 52-week high of $51.35.

Basin Water (BWTR) Delays results and audit committee begins investigation. Falls to $1.29 from 52-week high of $13.42.

SiRF Technology (SIRF) Loses patent ruling against Broadcom (BRCM) Drops to $2.15 from 52-week high of $30.61.

Douglas A. McIntyre