By Angela Harmantas
Here at SmallCapPower we love talking about all things gold. Today on Before The Bell we’re looking at two sides of the coin (forgive the easy pun). On the positive side, we think Goldcorp is ready to make an acquisition and pick a few companies who might be of interest to them. But there are more than a handful of companies that continue to struggle – we analyze four of them that may have a common thread. And after a tumultuous week, we end by rounding up three stories that could positively impact global markets in the days to come – here’s what you need to know today:
Despite the beating that the gold price experienced the past few months, there are cashed-up companies who are looking to make acquisitions, and the market seems ripe for purchases as we head out of the quieter summer period. Goldcorp is the biggest name to watch over the next few months – the company has a strong balance sheet and about $1 billion in cash. Our analysts compiled a list of 6 juniors that could be taken out by Goldcorp if the company is looking to acquire properties in their sweet spot of the Americas. Let us know what you think about the list, and whether you think it makes sense for them to acquire more properties as the industry itself rebuilds.
The flip side, of course, is that too many companies are struggling to maintain a healthy share price as gold tumbles. While there are numerous juniors who are having challenges, our experts look at 4 junior gold miners that are suffering while others shine. What I find interesting about these companies is that none of them have projects in Canada – actually, three of the four (Orezone Gold Corp., Robex Resources Inc. and Golden Star Resources Ltd.) are operating in West Africa. What do you think this says about the viability of working in the gold-rich region?
It’s Friday, and after a memorable week in the market I thought I’d round up a few stories that may impact the weeks to come in business. In Canada, the Big 6 banks all reported healthy quarterly earnings and thankfully, our worries about the low Canadian dollar and sinking oil prices looked to be unfounded. After falling below US $40 this week, the oil price rallied 10% higher on Thursday, the biggest daily climb in six years. Finally, the US economy grew 3.7% this past quarter – a healthy sign after so much instability this week. I’m looking forward to a couple of days to catch my breath – have a great weekend everyone!
Do you have a burning question you’d like answered by an investment expert or analyst? Let me know and I can post the answer here in the blog. Contact me by email at angela@smallcappower.com or on Twitter: @aharmantas.
