wall street
NEW GOLD INC., $2.85, symbol NGD on Toronto, recently started building a mine at its 100%-owned Rainy River project in Ontario. It aims to start production in mid-2017 at an average of 325,000 ounces of gold annually over nine years (along with silver as a by-product). The company has now entered into a $175-million streaming agreement with Royal Gold (Nasdaq symbol RGLD) to help fund Rainy River (all figures except share price in U.S. dollars). Royal will pay $100 million at the start of the deal and the remaining $75 million when the mine is 60% complete (projected at mid-2016)....
You can cut your investment risk and enhance your potential profit by investing in stocks with hidden assets. These are assets that most investors overlook. The classic example is real estate that is worth a lot more than its balance-sheet value (which is usually the purchase price, minus depreciation on the buildings). Another source of hidden value is successful research and development spending. These outlays get written off against current-year income, much like day-to-day expenditures such as rent and utilities. This accounting treatment depresses current earnings. But if the research turns up anything of value, it adds to long-term profit. This past week, we had examples of both kinds of hidden-value stocks, and the gains they can generate when their hidden values become apparent....
BHP Billiton (ADR), $39.13, New York symbol BHP (ADRs outstanding: 1.6 billion; Market cap: $64.3 billion; www.bhpbilliton.com), completed its plan to spin off some of its operations as a separate firm, called South32, in May 2015. BHP is a recommendation of our Wall Street Stock Forecaster newsletter. The South32 ADRs began trading on the Australian Securities Exchange on May 18, 2015, and on the U.S. over-the-counter market (symbol SOUHY) on the same date. BHP ADRs dropped about 7% on May 18, 2015, reflecting the value of the spun off South32 shares....
GOOGLE INC., Nasdaq symbols GOOG (class C non-voting), $672.93, and GOOGL (class A voting), $699.62, jumped 16% after reporting better-than-expected earnings this week. In the three months ended June 30, 2015, the company’s earnings gained 17.7%, to $4.8 billion from $4.1 billion a year earlier. Per-share profits rose 16.9%, to $6.99 from $5.98, on more shares outstanding. That was well ahead of the consensus estimate of $6.71. Revenue increased 11.1%, to $17.7 billion from $16.0 billion, falling just short of the consensus forecast of $17.8 billion. Excluding the negative impact of currency-exchange rates, revenue gained 18%....
Two U.S. stocks that tap into “big data” to serve financial firms are good stocks to buy as they trade near their all-time highs.
MICROSOFT CORP., $44.61, Nasdaq symbol MSFT, paid $9.5 billion for Nokia’s mobile phone operations in April 2014. If you exclude the cash this business held, the purchase price was $8.0 billion. Nokia is the only major phone maker using Microsoft’s Windows Phone software. Microsoft believed this purchase would help it sell more of its phones and encourage developers to write more apps for the platform. However, sales of Windows Phone devices continue to suffer in the face of intense competition from the iPhone and Android-powered devices. Smartphones running Windows account for just 3% of global sales....
Meta Description: Thanks to a key European acquisition and new fleet of planes, FedEx maintains its position as one of our best stocks to buy in the U.S.
Our latest update on two Canadian bank stocks, both of which have seen their international expansion plans bear strong results.
Our view on how Verizon, one of our best dividend stocks in the U.S., aims to hold off its challengers with two takeovers, including AOL.
CONAGRA FOODS INC., $44.56, New York symbol CAG, plans to sell its private-label food business, which makes packaged foods for grocery, warehouse club and drug stores. The company entered this business in January 2013 when it paid $4.75 billion for Ralcorp Holdings, the largest private-label food maker in the U.S. However, the purchase hasn’t worked out as well as ConAgra hoped, as strong competition and higher ingredient costs hurt Ralcorp’s sales and earnings. As a result, ConAgra has had to write down this investment by $2.1 billion. In its fiscal 2015 fourth quarter, which ended May 31, 2015, ConAgra’s overall sales rose 3.7%, to $4.10 billion from $3.96 billion a year earlier. That missed the consensus forecast of $4.14 billion....