Today on Stockhouse
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Get the facts on gold investing including eight exclusive feature stories in the Stockhouse North American Gold Report.
Jeb Handwerger explains why it’s time to buy undervalued gold miners.
Top Bullboards post: “Even with $550 cost BZA should earn $50m net profit before taxes in 2012. Market cap is in the $75m to $80m range. This is less than a PE ratio of 2. Taxes should be low in 2012 as carry forward losses and depreciation will help. Even with 40% tax in 2013 we are trading at less than 3 times earnings. There is no debt and we will have oodles of cash to invest in other ventures. One cost that will be double the original estimate is royalties. The cost rises with the price of gold so the actual costs will be over $500 for sure. $1,200 or $1,300 operating margin per ounce is still pretty nifty. The share price in 2012 and 2013 will also largely depend on a potential huge increase in the reserves that might make it a 15 to 20 year mine life based on known current limited measurements. The share price can be further driven skyward by the purchase of a second mine without much dilution. We would then avoid the so called negative premium for single mine companies. I was predicting $3 a share a year ago but the multiples for all gold miners have been shrinking so I now imagine $1.50 to $2.00 within a few years.” From materialsgirl on the American Bonanza Gold (TSX: T.BZA, Stock Forum) board.
Top Bullboard:Intertainment Media (TSX: V.INT, Stock Forum) received the most reads and posts.
Top blog: LexLuthor2 presents junior resource stocks on his watch list in the Lex Corp News Letter blog.
For news about small stocks that made big moves in Monday’s trading, please read the Stockhouse Canadian Small and Micro-cap Stock Report.
Word on Wall Street
"The rebound is pretty much focused on buying into some of the safer issues," said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co in San Francisco, in an interview with Reuters.
"There's value in the market, but very little faith in the government in dealing with the (U.S.) debt problem. People are sticking to the big names. No one is taking on added risk."
| Selected expected U.S. earnings releases for Monday |
| (Consensus Estimates vs. Last Year) |
|
| Daktronics (NASDAQ: DAKT) |
Q1 |
$0.11 vs. $0.06 |
|
| Dycom Industries (NYSE: DY) |
Q4 |
$0.24 vs. $0.12 |
|
| HJ Heinz Co. (NYSE: HNZ) |
Q1 |
$0.76 vs. $0.75 |
|
| Origin Agritech (NASDAQ: SEED) |
Q3 |
$0.75 vs. $0.59 |
|
| The Hain Celestial Group (NASDAQ: HAIN) |
Q4 |
$0.33 vs. $0.26 |
|
| Williams-Sonoma (NYSE: WSM) |
Q2 |
$0.36 vs. $0.31 |
|
| Selected expected Canadian earnings releases for Monday |
| (Consensus Estimates vs. Last Year) |
|
| Bank of Montreal (TSX: T.BMO) |
Q3 |
$1.33 vs. $1.14 |
|
Today In The Markets
Stock markets advance, traders look to key Fed chairman speech Friday
|
| DJIA |
10,854.65 |
+37.00 |
 |
|
| NASDAQ |
2,345.38 |
+3.54 |
|
|
| S&P500 |
1,123.82 |
+0.29 |
|
|
| S&P/TSX |
12,068.36 |
+60.89 |
|
|
| S&P/TSX Venture |
1,766.76 |
+1.92 |
|
|
(The Canadian Press) TORONTO-NEW YORK - The Toronto stock market closed higher Monday as traders look to a key speech by the chairman of the U.S. Federal Reserve Board for assurance that the central bank will do whatever it takes to keep the economy from slipping back into recession.
The S&P/TSX composite index ran up 60.89 points to 12,068.36. But it was another volatile session, charging ahead by as much as 211 points earlier in the session.
The TSX Venture Exchange was ahead 1.92 points to 1,766.76.
New York markets were also positive amid another day of big swings. The Dow Jones industrial average surged just over 200 points during the morning, gave up all gains around midday, but later closed up 37 points to 10,854.65.
The Nasdaq composite index advanced 3.54 points to 2,345.38 and the S&P 500 index added 0.29 of a point to 1,123.82.
Please click here for the complete U.S. and Canadian market summaries.
After-Hours News
Hathor Exploration Limited (TSX: T.HAT, Stock Forum) announced that it has acquired, via a plan of arrangement and pursuant to National Instrument 62-103 The Early Warning System and Related Take-Over Bid and Insider Reporting Issues that on August 5, 2011, ownership and control of all of the issued and outstanding securities of Terra Ventures Inc. (TSX: T.HAT, Stock Forum) being 61,943,348 common shares , and assumed 6,185,000 options to acquire Terra Shares and 8,813,331 warrants to acquire Terra Shares. As a result of this acquisition, Hathor owns a total of 61,943,348 Terra Shares representing 100% of the total number of Terra Shares issued and outstanding and assumed a total of 6,185,000 Terra Options and 8,813,331 Terra Warrants representing 100% of the total number of Terra Options and Terra Warrants issued and outstanding.