Barrick Gold Corporation (NYSE: ABX) — This gold, silver and copper miner gives investors few opportunities to buy it at a bargain price.
In early December, ABX pulled back from a high of almost $56, bottoming at just under the 200-day moving average at $46, and then rebounded to a new high on Thursday at $55.74.
Yesterday, ABX fell $3.77, or almost 7%, to $51.86 on news that it made a bid for Australian copper miner Equinox Minerals. As the Wall Street Journal said, “That isn’t what gold bugs signed up for.”
But copper’s long-term value could offset Barrick’s dependence upon the yellow metal. So far, Barrick’s management has been superb, and this pullback looks like a great time to pick up more shares, which now rest smack on the 50-day moving average (blue line) — a good area of support.
S&P rates ABX a “four-star buy” with a 12-month target of $70.
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