AUY Preview: Time to Give Up?

Yamana Gold (AUY - commentary - Cramer's Take) is scheduled to report its first-quarter 2008 results after the market closes on Wednesday, and the company will conduct its quarterly conference call after the market opens on Thursday

Analysts expect Yamana to earn 13 cents per share on revenue of $309.7 million.

This is a short reporting period for Yamana, which last conducted its December quarter conference call on March 25, when the March quarter now being reported was nearly in the books.

For that December quarter, the company fell short on revenue but guided to 30% higher gold sales in 2008.

Yamana's other issue was the integration of the Meridian and Northern Orion acquisitions. Also, since last reporting, the price of gold has tumbled after peaking a bit over $1,000 an ounce.

Taken together, this has forced Yamana shares to also tumble.

I don't think that it is time to give up on Yamana, but that could all change after the company reports this week.

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At the time of publication, Rothbort was long Yamana Gold, although positions can change at any time.

Scott Rothbort has over 20 years of experience in the financial services industry. In 2002, Rothbort founded LakeView Asset Management, LLC, a registered investment advisor based in Millburn, N.J., which offers customized individually managed separate accounts, including proprietary long/short strategies to its high net worth clientele. He also is the founder and manager of the social networking educational Web site TheFinanceProfessor.com.

Immediately prior to that, Rothbort worked at Merrill Lynch for 10 years, where he was instrumental in building the global equity derivative business and managed the global equity swap business from its inception. Rothbort previously held international assignments in Tokyo, Hong Kong and London while working for Morgan Stanley and County NatWest Securities.

Rothbort holds an MBA in finance and international business from the Stern School of Business of New York University and a BS in economics and accounting from the Wharton School of Business of the University of Pennsylvania. He is a Term Professor of Finance and the Chief Market Strategist for the Stillman School of Business of Seton Hall University.

For more information about Scott Rothbort and LakeView Asset Management, LLC, visit the company's Web site at www.lakeviewasset.com. Scott appreciates your feedback; click here to send him an email.