Mining stock analysis
Most mining stocks have risen during the past month due to the revival in precious metals prices. The mining companies we’ll look at in this article are all more sensitive to movements in precious metals than they are to movements in the equity market in general.
For our analysis, we’ve selected Alamos Gold (AGI), B2Gold (BTG), Royal Gold (RGLD), and Goldcorp (GG). Among these four selected miners, only Alamos has shown a fall in its price over the past 30 trading days, while B2Gold, Royal Gold, and Goldcorp have risen 7.8%, 3.2%, and 16.2%, respectively.
Now let’s take a look at the volatility figures of our selected miners. Volatility here refers to call-implied volatility, which measures the price changes in a stock with respect to the changes in the price of its call option.
Volatility in miners is often much higher than volatility in precious metals. AGI, BTG, RGLD, and GG have call-implied volatilities of 48.1%, 48.3%, 25.6%, and 32.6%, respectively.
The RSI (relative strength index), on the other hand, measures whether a stock is comparatively overvalued or undervalued. When a stock’s RSI level is above 70, it shows that the asset could be in overbought territory, so its price might deteriorate. When a stock’s RSI indicator is below 30, it indicates that the stock could be oversold and its price could rise. AGI, BTG, RGLD, and GG have RSI levels of 32.3, 52.2, 78.2, and 71.5, respectively.
Apple (AAPL) is moving to capitalize on the reduced US tax rate to repatriate the billions of dollars in foreign profits it holds overseas.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.