This
is a clip from today’s Globe Report on Business
“Barrick’s
woes in Chile
deepen as Pascua Lama is suspended” and “Barrick has endured one of the most
tumultuous years in its 30-year history, beginning with the sudden replacement
of its chief executive officer in mid-2012, the subsequent cost overrun at
Pascua-Lama and a $3.8-billion writedown on a high-priced copper acquisition.
As an industry, mining is facing the worst cost increases in decades”
In
response to the news Canadian and U.S. investors pounded the stock down
roughly 8.4% to close at $24.46 yesterday.
This
Barrick fiasco could be a setup for a great contrarian play. I can’t imagine
any advisor having the guts to call a client and table arguments as to why
Barrick should be bought today. My experience has been that when a client is
easily sold on an investment, it is too late. It is the hard sells that pay off
in the long run. For example if a year ago your advisor called and told you to
by Air Canada
or Westjet you may have moved your account to another advisor
By
the way I note that Barrick has a dividend yield of 3% and a payout ratio of under
20%, one of the lowest of all the CDN large caps
No comments:
Post a Comment