Stock to Sell #4 – Newmont Mining (NEM)
Newmont Mining (NEM) is one of the largest gold and copper producers in the world. In my Stocks to Sell in June report, I said, “It is in a pronounced bear market with fragile support at its recent low at $30.30. Sell NEM at the market or sell it short with a price objective in the mid-$20s.”
S&P recently downgraded its rating on Newmont to “BBB” from “BBB+” following a Q3 revenue miss and citing the impact of lower gold prices on its business.
NEM is in a bear market with resistance at its 50-day moving average at $28.50. But selling has not abated and, after a new MACD sell signal, the stock appears destined to break its low at $25.33.
Sell NEM at the market. There is no firm downside objective, but the stock could fall to the mid-teens.