TSC Ratings' Updates: Massey

The following ratings changes were generated on Wednesday, Oct. 29.

We've downloaded Barrick Gold(ABX Quote), which engages in the acquisition, exploration, and development of gold properties, from buy to hold. Strengths include its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Revenue rose by 19.8% since the same quarter one year prior but significantly trailed the industry average of 81.1%. Barrick's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying very successful management of debt levels. The company also maintains an adequate quick ratio of 1.46, which illustrates the ability to avoid short-term cash problems. The gross profit margin is rather high at 51.9%, having increased from the same quarter the previous year. Net profit margin of 24.70% trails the industry average. ...