Stock to Sell #6 – Newmont Mining (NEM)
Newmont Mining (NEM) is one of the largest gold and copper producers in the world. In my Stocks to Sell in April report, I said, “A recent recovery rally from its March low of $38.50 appears to be stalling at its 50-day moving average, now at $42.10. Buying volume is declining, and so the stock doesn’t appear to have enough momentum to complete a reversal up.” And in June, I said, “As expected, the recovery failed and the stock plunged to $30.30.”
Now analysts are expecting lower sales estimates for this year accompanied by higher production costs, which they calculate will bring in earnings of $1.94 in 2013, down from $3.71 in 2012.
The stock is in an extended bear market and has only rallied as a result of the world’s unstable political condition. The recent rally failed at its intermediate resistance line at $34, which was accompanied by a sell signal from MACD. Use the recent bounce to sell NEM at the market.