Kinross, Canada's third-largest gold producer by market value, dropped 21 percent. Cenovus Energy Inc., the country's fifth-biggest energy company by revenue, rose 4.4 percent after an analyst at Canaccord Financial Inc. raised his share-price estimate on the company. Research In Motion Ltd. gained 5.3 percent after a report that Samsung Electronics Co. may be interested in buying the company.
Kinross Gold trades at a forward price earnings ratio of 10.15. The balance sheet of the firm includes revenues $3.91 billion, $1.88 billion in cash and $1.44 billion in debt. Moreover, Kinross Gold has been seeing consistently increasing earnings over the last 52 weeks ranging from $.13 to $.24. These figures are illustrating how the company has the ability to deliver high levels of earnings growth. However, the markets have oversold the stock in comparison with the Dow Jones Industrial Average (based on the lower forward price earnings ratio). At the same time, the balance sheet is highlighting how the company has the potential to pay down debt or repurchase shares.
This is when the price could move higher over the long term. The technical factors are illustrating that company is in a bearish pattern. With shares trading below the 200 day moving average of $15.05 and the volume is considerably light (which is indicating a lack of conviction among buyers). As a result, the stock could see near term pressure before the markets realize that the company has solid fundamentals.
This is when there could be strong upward momentum. For precious metals investors who are more keen to approach silver as an investment in lieu of gold miners, see my analysis on that subsector's best deals. Please note: the analysis of the above companies should be used as a starting point for any kind of further research. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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