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Inv Reporter says buy Barrick Gold

2016-05-06 05:51 ET - In the News

The Investment Reporter, in its April 29, 2016, issue, says buy Barrick Gold Corp., recently $20.11. The Reporter said buy 23 times from Nov. 17, 1995, to Oct. 30, 2015, at prices ranging from $10.10 to $47.75. Assuming an investment of $1,000 for each of the 23 buys, the $23,000 position would now be worth $16,429. The price of the stock has doubled since the Reporter's recommendation on Oct. 30, 2015. Usually, the higher the price, the greater the risk, but it does give the shares momentum. Barrick has some things going for it. First, it beats its peers with the lowest all-in sustaining cost per ounce. Second, the gold producer's earnings are expected to increase to 34 cents a share. Third, higher earnings should increase its cash flow per share. Fourth, eight analysts following Barrick have a consensus recommendation of "buy." One drawback is that Barrick's production is expected to decrease, but the Reporter points out that most companies are seeking to maximize cash flow rather than production. The stock remains a buy.

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