Barrick Gold Corp.

Sound bite for Twitter and StockTwits is: Still not doing well. I am going to hold on to my stock at present as I believe that this stock will be recovering. See my spreadsheet at abx.htm.

I own this stock of Barrick Gold Corp. (TSX-ABX, NYSE-ABX). I bought some of this stock in April 2013 because its stock price had fallen hard. I believed the market over reacted. I do know that this is a longish term bet. I just bought 100 shares as I am living off my portfolio and do not have much to invest.

This is a dividend growth stock. I usually like dividend growth stocks, but this is not I would buy for the dividends or for the long term. They reasons being is that this is a mining stock and the dividends are usually below 1%. However, I get some fun out of buying such stocks for the short term.

I expect to make some money out of this stock, but mostly in capital gains rather than dividends. However, I will not be making a lot of money as I have not invested much in this stock. Well, so far I have not made any money as my stock is down by 11.99% per year with a capital loss of 13.62% per year and dividends at 1.63% per year. Total return over the past 5 and 10 years is negative for this company with total returns at negative 19.37% per year and 5.86% per year.

Outstanding shares have increased over the past 5 and 10 years at 3.4% and 8.1% per year. Growth in Revenue over the past 5 and 10 years is low to good. The real problem is Revenue has declined over the past two years by 14% and 18%.

The company has had negative EPS over the past 3 years. Even their Adjusted EPS is showing a decline for 2014 of some 73%. They do have positive cash flow. The growth over the past 5 years is good because 5 years ago they had a negative cash flow. However, if you look at the 5 year running averages over the past 5 and 10 years, CFPS is up by 32% and 15% per year.

Since the EPS and Net Income have been negative over the past 3 years, there is no Return on Equity.

They do have some good debt ratios. The Liquidity Ratio for 2014 is very good at 2.40. The Debt Ratio is also quite good at 1.61. Leverage and Debt/Equity Ratios are a little high at 2.63 and 1.63. I would prefer these ratios to be below 2 and 1, respectively.

This is the first of two parts. The second part will be posted on Friday, May 1, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.

Barrick Gold Corporation is a gold mining company with a portfolio of operating mines, and advanced exploration and development projects located across five continents. Its web site is here Barrick.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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