Barrick Gold Corp

Sound bite for Twitter and StockTwits is: Resource and high risk. The stock has had a good run since I bought it. I wonder if I should hold it longer or sell. A positive is that there was insider buying at a rate of 0.02% over the past year. Buying was recent and close to the current price. See my spreadsheet on Barrick Gold Corp.

I own this stock of Barrick Gold Corp (TSX-ABX, NYSE-ABX). This is a big gold mining company that I have followed for years. It was on some dividend growth lists at different times and covered by the Investment Reporter. I bought some of this stock in April 2013 because its stock price had fallen hard. I believed the market over reacted. I just bought 100 shares as I am living off my portfolio and do not have much to invest. I bought another 100 shares in 2016.

I must admit I am just fooling around with this stock. I am not big into investing in resource stocks, but this had taken it on the chin so it looked like a good one for my fooling around money. The problem with how I actually make money on the stock market is that it is boring. That is why I have fooling around money. Bets are small so they cannot harm my portfolio. So I can have some fun without causing me any problems. How did I do? I have made a total return of 19.21% per year on this stock. Basically I have made a couple of thousand dollars and I have some fun.

Money can be made on resource stocks if you buy them when they are down and sell them when they are up. I would never consider any resource stock as a long time buy and hold stock. It is not just that they are volatile, they seem almost cyclical. In any event that is how I feel about them.

Because there have been a number of negative earnings years lately, the 5 and 10 year low, median and high median Price/Earnings per Share Ratios are not useable. The historical ones are 14.52, 22.29 and 27.83. These are rather high ratios. The current P/E Ratio is 29.00 based on a stock price of $25.64 and 2017 EPS estimate of $0.88 CDN$ ($0.66 US$). This stock price testing suggests that the stock price is relatively expensive. It is at a lower price that it has been most of time from 1993 to 2013. The stock has been lower than the current price since 2013.

I get a Graham Price of $13.49. The 10 year low, median and high median Price/Graham Price Ratios are 0.88, 1.28 and 1.62. The current P/GP Ratio is 1.90 based on a stock price of $25.64. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year Price/Book Value per Share Ratio of 2.02. The current P/B Ratio is 2.80 based on BVPS of $9.14 and a stock price of $25.64. The current ratio is some 39% higher than the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

The historical median dividend yield is 0.98%. The current dividend yield is 0.63% based on dividends of $0.16 and a stock price of $25.64. The current yield is some 36% below the historical median yield. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts’ recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Hold, but Buy is a close second. The consensus recommendation would be a Buy. The 12 month stock price is $21.34 US$ or $28.59 CDN$. This implies a total return of 12.13% with 0.63% from dividends and 11.50% from capital gains.

Neha Chamaria of Motley Fool compares Royal Gold (NASDAQ:RGLD) and Barrick Gold Corp in this article. He says that Royal Gold is safe, but Barrick Gold Corp is cheap. The Canadian Press published a story on CTV News about Barrick Gold Corp selling a 50 per cent stake in its Veladero mine in Argentina to Chinese mining company Shangdong Gold Group. Analysts make remarks about this company on Stock Chase.

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 Gold Corp.

The last stock I wrote about was about was Leon's Furniture Ltd. (TSX-LNF, OTC-LEFUF)... learn more . The next stock I will write about will be Pembina Pipelines Corp. (TSX-PPL, NYSE-PBA)... learn more on Wednesday, April 12, 2017 around 5 pm. Tomorrow on my other blog I will write about Stocks Suggestions... learn more on April 11, 2017 around 5 pm.

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.

See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.