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NEM at 52-week Low - Gold Shines for Gurus Rogers and Van Den Berg

April 30, 2013 | About:
Sally Jones

Sally Jones

49 followers
The GuruFocus 52-week low screener reveals that one of the world’s largest gold producers, Newmont Mining Corporation (NEM), is at a 52-week low of $31.45 (high was $57.93). According to the GuruFocus Value Screen for 52-week lows, NEM is 45.7% off high. But top investor Gurus, Brian Rogers and Arnold Van Den Berg have added to their positions as of March 31, 2013.

Newmont Mining Corporation (NEM) is a gold and copper producer, with assets or operations in the U.S., Australia, Peru, Indonesia, Ghana, New Zealand and Mexico. Founded in 1921 and publicly traded since 1925, Newmont Mining Corporation is the only gold company included in the S&P 500 Index and Fortune 500. Headquartered near Denver, Colo., the company has approximately 40,000 employees and contractors worldwide.

For some investors, it doesn’t matter that a company’s cash flow from operations is divergent from the reported net income, or that asset growth is faster than revenue growth, or that inventory is building up, or that revenue has declined over the last year, as is the case with Newmont. Investors may just give more weight to a company’s positive signs, such as: The NEM stock dividend yield is close to a10-year high, and the P/E ratio (8.8574) is close to a 10-year low of 8.8574. Also, NEM’s P/B ratio (1.2) is close to a 10-year low of 1.19, and its P/S ratio (1.68) is close to a 10-year low of 1.66.

Further, in 2012 Newmont Mining had annual revenue of $9.9 billion, net income of 1.8 billion, and an operating cash flow of $2.4 billion. Newmont had record regular dividends paid to shareholders of $695 million, or $1.40 per share, representing a payout ratio of 38% of adjusted net income. The company has been included in the Dow Jones Sustainability World Index for the sixth year in a row.

Newmont’s core commodities are gold and copper. At the end of 2012, the company lists 99.2 million attributable ounces of proven and probable gold reserves and attributable production of 5 million ounces. For copper last year, the company lists 9.5 billion attributable pounds of proven and probable copper reserves and attributable production of 143 million pounds.

Guru Trades

As of March 31, 2013, Arnold Van Den Berg of Century Management increased his NEM position by 76.48% buying 430,276 shares at an average price of $48.14 per share for a 35% loss. Van Den Berg’s holding history shows five consecutive quarters of losses since he first bought the stock in first quarter 2012. He now owns 992,859 NEM shares after the trade. The current NEM share price is $33.97 with a change from average down 20%.



Guru Brian Rogers of T. Rowe Price Equity Income Fund also added to his NEM position as of March 31, 2013. Rogers increased his position by 81.67% buying 1,225,000 shares at an average price of $42.68 per share for a 26.5% loss. Rogers’ trading history shows three consecutive quarters of losses since he first bought the stock in the third quarter of 2012. He now owns 2,725,000 NEM shares after the trade.



The portfolio of T. Rowe Price Equity Income Fund lists 120 stocks with a total value of $25.2 billion and a quarter-over-quarter turnover of 3%.

Brian Rogers’ top buys, sells and holdings:



Century Management has a portfolio of 62 stocks has a total value of $1.02 billion, and a quarter-over-quarter turnover of 8%. Arnold Van Den Berg’s top buys, sells and holdings:



Check out the GuruFocus special feature 52-week low screener to help you find stocks hitting new lows but are still held by top investor Gurus and Insiders. Researching these stocks may help you find deep valued stocks.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.2/5 (6 votes)

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