Gold prices are edging up due to investors looking for a bargain, the Wall Street Journal reports. Gold prices will likely reverse their gains if the European Central Bank approves more stimulus measures, according to the Journal.
"It all indicates a stronger dollar and therefore a weaker gold prices," Graham Leighton, a precious metals broker with Marex Spectron, told the Journal.
Gold for December delivery is up 0.78% to 1,064.40 per ounce on the COMEX this afternoon.
Based in Toronto, Kinross is a gold mining company that operates in Canada, the U.S., Russia and Chile.
Separately, TheStreet Ratings team rates KINROSS GOLD CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
We rate KINROSS GOLD CORP (KGC) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 933.3% when compared to the same quarter one year ago, falling from -$5.10 million to -$52.70 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, KINROSS GOLD CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $232.10 million or 23.39% when compared to the same quarter last year. Despite a decrease in cash flow KINROSS GOLD CORP is still fairing well by exceeding its industry average cash flow growth rate of -54.27%.
- This stock's share value has moved by only 36.31% over the past year. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- Despite the weak revenue results, KGC has significantly outperformed against the industry average of 45.4%. Since the same quarter one year prior, revenues fell by 14.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: KGC
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.