Barrick targets Newmont

NEWMONT MINING $34.02 (New York symbol NEM; Shares outstanding: 532.7 million; Market cap: $18.1 billion; TSINetwork Rating: Average; Dividend yield: 1.7%; is now the subject of a takeover bid by Barrick Gold (symbol ABX on Toronto). Barrick is offering 2.5694 of its shares for each Newmont share.
The… Read More

Q: Hi, Pat. Regarding Newmont Mining, your “buy” recommendation is always tempered with “for investors who want to own a gold stock.” Can you explain why investors might want to own a gold stock, and the pros and cons of owning a gold stock?

A: We don’t see golds as an essential part of a sound portfolio, and, in fact, gold investing is a poor choice for most investors. For one thing, it involves considerably more guesswork than other aspects of investing.

The markets for widely traded goods like gold… Read More