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10 Gold, Metal and Mining Stocks Stuck in Deep Holes

High gold prices, inflation aren't helping all metal stocks


Gold prices have been soaring lately, with the precious metal again over $1,500 and creeping up on its high of $1,571 set in April. As a result, many gold mining stocks have been going like gangbusters.

What’s more, commodity inflation continues to lift most other materials stocks, too. After all, when your materials cost more, you can command a bigger price – much like Big Oil profiting from higher crude prices.

However, it’s important to note that inflation is not lifting all metal and mining stocks. Steel demand is weak despite rising commodity prices. Even some gold companies are struggling.

So, what metal stocks should you avoid? Here are a few big-name blue chips to sell now:

Newmont Mining Corp.

Gold producer Newmont Mining Corp. (NYSE: NEM) has watched its stock drop 15% since the start of 2011. The company posted a quarterly earnings growth of -6% in its last income statement.

Companhia Siderurgica Nacional

The stock value of integrated steel producer Companhia Siderurgica Nacional (NYSE: SID) has dropped 29%, year-to-date. Currently, the stock is trading less than a quarter higher than its 52-week low of $11.70.


Another steel producer on the list is ArcelorMittal (NYSE: MT), which is down 15% for 2011. More recently, the stock also is down 10% in the last three months.

Barrick Gold Corp.

Gold seller Barrick Gold Corp. (NYSE: ABX) is down 19% year-to-date. The mining stock currently is trading just above its 52-week low of $39.67.

Southern Copper Corp.

Integrated copper producer Southern Copper Corp. (NYSE: SCCO) has watched the value of its stock drop 36% in the last seven months. More recently, the stock has dropped a discouraging 15% in the last 30 days alone.

AngloGold Ashanti

AngloGold Ashanti (NYSE: AU) is a mining company that operates in 10 countries across four continents. Year-to-date, the company’s stock has dropped 19%, compared to gains by the broader markets. The stock also is down 13% for the month of June.

Nucor Corp.

Steel manufacturer Nucor Corp. (NYSE: NUE) also has had a bad 2011, down 10% in the last seven months. Despite strong gains at the start of 2011, NUE stock still is down 4% overall for the last 12 months.

Aluminum Corp. of China

As its name would suggest, Aluminum Corp. of China Ltd. (NYSE: ACH) is an aluminum producer in China and it has experienced a stock drop of 9% in the last seven months. ACH reported a quarterly earnings growth of -47% in its last income statement.


Integrated mining, steel, ferroalloys and power company Mechel (NYSE: MTL) is down 14% in 2011. Mechel also recently posted a dismal quarterly earnings report at -53%, year-over-year.

Gold Fields Ltd.

Last up is gold miner Gold Fields Ltd. (NYSE: GFI), which has watched its stock value drop 24% year-to-date. Sell this stock before it gets any closer to its 52-week of $12.32.

As of this writing, Louis Navellier did not own a position in any of the stocks named here.

Article printed from InvestorPlace Media,

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