Patrick T. Fallon/Bloomberg via Getty Images Toll Brothers' quarterly profit more than doubled as a recovering housing market allowed the largest U.S. luxury homebuilder to sell more homes at higher prices, sending its shares up 4 percent. The company, which sells homes that can cost more than $2 million, has been able to perform better during the past few quarters than most large U.S. homebuilders as its buyers were less affected by a recent rise in mortgage rates. Toll's average selling price rose about 22 percent to $706,000 in the second quarter ended April 30 -- a period well into the spring selling season, which is to homebuilders what the holiday shopping season is to retailers. Toll (TOL), which mainly builds single-family houses, handed over 1,218 homes in the quarter, up 36 percent from a year earlier. While the company's sales remain strong, it decided last year to build and rent apartments to cater to the demand for rentals as higher interest rates and slow income growth pushes home ownership out of reach for many Americans. Permits to build multifamily housing such as apartment blocks rose 19.5 percent in the United States last month, compared with a 0.3 percent rise in permits for single-family homes. Toll Brothers said Wednesday it had about 1,500 rental units under construction and that it controlled sites for another 3,800. Lennar (LEN), the second-largest U.S. homebuilder, is the only other builder that is offering apartment rental units. 'Impressive Results' Toll's net income soared to $65.2 million, or 35 cents a share, in the second quarter from $24.7 million, or 14 cents a share, a year earlier. Revenue jumped 67 percent to $860.4 million. Orders stayed almost flat at 1,749 homes, compared with a 6 percent fall in the first quarter. "We are in a leveling period in the early stages of the housing recovery with significant pent-up demand building," Chief Executive Officer Douglas Yearley said in a statement. UBS analyst David Goldberg called the results impressive but said they were already reflected in the company's valuation. Toll trades at 17.7 times 12-months forward earnings, and is expensive compared to an average of 14 times for top five U.S. builders D.R. Horton (DHI), Lennar, PulteGroup (PHM), NVR (NVR) and KB Home (KBH), according to Thomson Reuters StarMine. Toll's shares were up 3.7 percent at $36.95 in early trading. Shares of D.R. Horton, Lennar, PulteGroup and KB Home also rose. -.
Hot Solar Stocks To Own Right Now: Golden Star Resources Ltd(GSS)
Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.
Advisors' Opinion:- [By Rich Duprey]
Clash of the titans
When bears are raging on the gold bullion market, it's not surprising to see gold stocks getting mauled as well. Golden Star Resources (NYSEMKT: GSS ) was the biggest loser in the sector, losing a quarter of its market cap on no company-specific news, though a report last Friday indicated that a large number of hedge funds had recently dumped their positions in the mid-tier miner. Yet it wasn't all that much better among the majors, either, as Barrick Gold (NYSE: ABX ) fell almost 13% and Kinross Gold (NYSE: KGC ) was down 14%. - [By Patricio Kehoe] ating price of the commodity, along with the geopolitical risks involved in mining in African nations such as Ghana, are just two of the obstacles the firm is facing. In addition, as one of the smallest gold mining firms in the industry, with a market cap of just $122 million, Golden Star has had a very difficult time financing its latest expansion projects. With share prices tumbling towards all-time lows, gurus such as Steven Cohen, Chuck Royce and Arnold Schneider have already sold out their positions in the troubled firm.
Why Have Gurus Lost Faith in Golden Star?
Despite aggressive expansion over the past decade, the Toronto-based gold mining firm has not been able to take advantage of its increased production output. Gold prices might have exploded over a ten-year period, yet the recent six-month decline has put a huge strain on Golden Star. The expedited maturation of its mines is particularly troubling, since the accelerated extraction rates, which allowed for short-term profits, are now falling considerably. The impact of the company�� excessive overproduction on profits and growth is clear: decreasing gold reserves mean less production, and thus reduced revenue for the gold miner. When the decline in metal prices are taken into account, the outlook is even more grim.
In addition to overexpansion at the wrong time, Golden Star�� position has weakened due to its comparably less efficient operations. Unlike industry peers, such as IamGold Corp. (IAG) or Gold Fields Ltd. (GFI), the majority of the Toronto-based miner�� assets contain refractory ore, which is far more expensive to extract than non refractory ore. And, in an attempt to switch production to the lower cost gold ore, and thus increase margins, Golden Star has depleted its mines��non refractory ore. With low reserves and mounting cash costs, the firm inevitably turned to new acquisitions.
Overpriced Acquisitions and Geopolitical Risk
The purchase
- [By Sean Williams]
Golden Star Resources (NYSEMKT: GSS )
It's simple physics: The bigger they are, the harder they fall. When gold prices nosedived earlier this week, gold miners with historically higher operating costs took the brunt of the hit. For the most part, that meant that development-stage miners, and those operating in Africa, where labor and political costs make cost-effective mining a challenge, took it on the chin. Possibly no stock was hammered more than Golden Star Resources, a gold miner in Ghana, which lost about one-quarter of its value on Monday alone. - [By Patricio Kehoe] some future and gave several reasons for my bearish stance towards the stock. A small market, high geopolitical risk in some of the countries the firm operates, along with overexpansion in times of fluctuating gold prices gave tune to the massive shedding of shares by investment gurus. Five months have past since I last considered Golden Star�� potential, and everything indicates the situation has not changed.
Guru Activity Shows a Clear Tendency
Steven Cohen (Trades, Portfolio), Chuck Royce (Trades, Portfolio) and Arnold Schneider (Trades, Portfolio), had already sold their entire holdings in the company by October 2013, indicating they had little faith in the gold miner�� recovery. By the end of the year, Jim Simons' (Trades, Portfolio) Renaissance Technologies took a similar decision, reducing its stake in the firm by 32%. This tendency towards the sale of Golden Star stock was duly noted by investors and analysts alike, and concurs with the company�� poor performance.
A Look at the Numbers
In an industry plagued by fluctuating metal prices, operating with lofty margins can be quite helpful. Yet Golden Star cannot afford such luxuries. With an operating margin of 0.1% and a net margin of -56.8% the firm is in a tight spot, especially when compared to the industry average. Unlike its industry peers��median, which are of 2.26% and -0.09%, respectively, the Toronto-based gold miner is struggling to generate decent cash flow levels. Further metrics depict a even worse situation for shareholders: return on equity is currently at -370% and revenue growth is estimated to reach a poor 2.5%. Purchasing overpriced assets, relative to current gold prices, is surely one of the reasons for such grim figures, as financial losses have taken their toll on Golden Star.
The announcement of its 2013 full year, and fourth quarter earnings only helped to add to shareholders��concerns. A 15% decline in revenue was expected by those
Top 5 Gold Stocks To Invest In 2014: Agnico-Eagle Mines Limited(AEM)
Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. The company primarily explores for gold, as well as silver, copper, zinc, and lead. Its flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. The company was founded in 1953 and is based in Toronto, Canada.
Advisors' Opinion:- [By Mark Hulbert]
If you prefer the shares of individual gold-mining companies, Freeport-McMoRan Copper & Gold (FCX) �is currently the one most recommended by the Hulbert Financial Digest-monitored advisers who have beaten the S&P 500 over the past 15 years. Also popular are Agnico Eagle Mines (AEM) , Barrick Gold (ABX) , AngloGold Ashanti (AU) �and Newmont Mining (NEM) .
- [By Hebba Investments]
Even with rising Q2 costs, GG still has lower true all-in costs than many of its larger competitors' Q1FY13 costs. Compared to Q1FY13 numbers of competitors such as Yamana Gold (AUY) (costs just over $1300), Kinross Gold (KGC) (costs above $1350), Silvercrest Mines (SVLC) (costs below $1100), Newmont Gold (NEM) (costs around $1300) Agnico-Eagle (AEM) (costs around $1400) and Barrick Gold (ABX) (costs around $1200).
- [By Ben Levisohn]
As a result, Chidley and team upgraded Agnico Eagle Mines (AEM) and�Yamana Gold (AUY) to Neutral from Underweight, and raised Barrick Gold (ABX), Goldcorp (GG) and Iamgold (IAG) to Overweight from Neutral.�Gold Fields (GFI) was downgraded “due to increased risk and also reduced expectations for the South Deep operation,” Chidley says.
Top 5 Gold Stocks To Invest In 2014: Thompson Creek Metals Company Inc.(TC)
Thompson Creek Metals Company Inc., through its subsidiaries, engages in mining, milling, processing, and marketing molybdenum products in the United States and Canada. The company?s principal properties include the Thompson Creek Mine and mill in Idaho; a metallurgical roasting facility in Langeloth, Pennsylvania; and a joint venture interest in the Endako Mine, mill, and roasting facility in British Columbia. It also holds interests in development projects comprising the Davidson molybdenum property and the Berg copper-molybdenum-silver property located in northern British Columbia; the Howard?s Pass property, a lead and zinc project situated in the Yukon territory-northwest territories border; and the Maze Lake property, a gold project located in the Kivalliq district of Nunavut. The company produces molybdenum products, primarily molybdic oxide and ferromolybdenum, as well as soluble technical oxide, pure molybdenum tri-oxide, and high purity molybdenum disulfide. As o f December 31, 2010, its consolidated recoverable proven and probable ore reserves totaled 462.2 million pounds of contained molybdenum in the Thompson Creek Mine and the Endako Mine. The company was formerly known as Blue Pearl Mining Ltd. and changed its name to Thompson Creek Metals Company Inc. in May 2007. Thompson Creek Metals Company Inc. is based in Denver, Colorado.
Advisors' Opinion:- [By Garrett Cook]
Basic materials shares fell 1.04 percent on Friday. Top losers in the sector included Cliffs Natural Resources (NYSE: CLF), down 5.5 percent, and Thompson Creek Metals Company (NYSE: TC), off 5.4 percent.
Top 5 Gold Stocks To Invest In 2014: Goldcorp Incorporated(GG)
Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It produces and sells gold, silver, copper, lead, and zinc. The company was founded in 1954 and is headquartered in Vancouver, Canada.
Advisors' Opinion:- [By Doug Ehrman]
The end of last week saw a trifecta of bad news for gold miners, even as the SPDR Gold Trust (NYSEMKT: GLD ) showed a measure of strength. Randgold (NASDAQ: GOLD ) saw earnings weakness, Gold Fields (NYSE: GFI ) was downgraded, and Goldcorp (NYSE: GG ) missed earnings estimates significantly. The interplay between the gold commodity and the gold miners has been particularly interesting of late, making this a good time to consider gold mining stocks and their prospects moving forward.
- [By Heather Ingrassia]
On Friday, shares of PepsiCo -- which currently possess a market cap of $122.80 billion, a P/E ratio of 18.71, a forward P/E ratio of 16.78, and a forward yield of 2.86% ($2.27) -- settled at $79.73. As of June 30, 2013, and from a cash and debt perspective, Goldcorp (GG) had a total of $8.14 billion in cash and a total of $29.51 billion in debt on its books. Based on Friday's closing price of $29.92, shares of PepsiCo are trading 2.50% below their 20-day simple moving average, 3.60% below their 50-day simple moving average, and 3.40% above their 200-day simple moving average. These numbers indicate a short and mid-term downtrend and a moderate long-term uptrend for the stock, which generally translates into somewhat of a buying mode for most traders.
- [By Ben Levisohn]
There’s a lady who’s sure all that glitters is gold, but that lady is not Barclays, which named Goldcorp (GG) a top pick today.
Eva-Lotta Jansson/Bloomberg/Getty ImagesGoldcorp has gained 3.4% today, about in line with the Market Vectors Gold Miners ETF�(GDX) 3.5% rise. And much of the credit, of course, goes to the jump in gold prices: the�SPDR Gold Trust�(GLD) has gained 1.5%.
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