Donald Smith & Co. (Trades, Portfolio) has released its portfolio for the third quarter. The firm, originally purchased and renamed by the late Donald Smith in 1983, has revealed major reductions in gold and top holdings, including Gold Fields Ltd. (GFI), Air France-KLM (AFLYY), Taylor Morrison Home Corp. (TMHC), Iamgold Corp. (IAG) and Atlas Air Worldwide Holdings Inc. (AAWW).

The firm takes a strict bottom-up approach to investing. It seeks to invest in stocks that are out of favor and are selling at discounts to tangible book value. Ideal companies for the firm are trading at very

Donald Smith & Co. sold shares of the following stocks during the third quarter of fiscal 2020, which ended on Sept. 30.

Gold Fields

The firm reduced its stake in Gold Fields Ltd. (GFI) by 55.62%. The trade had an impact of -4.34% on the portfolio.

The gold miner has a market cap of $10.68 billion and an enterprise value of $12.18 billion.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 9.32% and return on assets of 3.9% are outperforming 88% of

Gold price outlook

Year-to-date, the price of gold is up nearly 14%, closing at $1,737.95 per troy ounce on the London bullion market and $1,748.60 per troy ounce on the Comex futures market on May 19.

Thoughout March, higher than normal volatility due to the Covid-19 pandemic served as a catalyst to rising gold prices. Investors may also worry about higher inflation given massive government monetary stimulus and the printing of new currency, prompting them to purchase the precious metal as a safe haven asset. Such an environment makes gold shine brighter than bonds and other fixed-income securities.

In order

Gold price outlook

Fears about a global economic slowdown related to the negative effects of the new coronavirus outbreak continue to push the gold price higher, breaking through $1,600, as the precious metal is considered a hedge against the risk of higher volatility and uncertainty.

The yellow metal rose 0.47% to close at $1,607.50 on the Comex gold futures market and 0.9% to $1,604.20 on the London bullion market on Wednesday. Year over year, the precious metal has gained nearly 20%.

Sluggish growth worldwide, as well as the threat of continuing trade conflicts, will serve as a catalyst for the

The U.S. economy keeps on expanding but not as it should, shedding some doubts on the near-term outlook for gross domestic product growth.

Last week, on Dec 13, we got some negative signs from U.S. retail sales, which is a significant indicator of the U.S. economy as consumer spending represents the largest component of the GDP.

U.S. retail sales increased by 0.2% in November of 2019, which was 20 basis points down from a 0.4% revised growth rate reported in the previous month and below expectations for a 0.5% growth rate.

Year over year, U.S. retail sales marked a 3.3%

The president and co-chief investment officer of Donald Smith & Co., Donald Smith (Trades, Portfolio), bought shares of the following stocks in both the second and third quarters of fiscal 2019.

Celestica Inc.

The guru increased the Celestica Inc. (CLS) position by 18.97% in the second quarter and then added 3.28% in the third quarter. The stock has a weight of 1.07% in the portfolio.

The electronic manufacturing service company has a market cap of $1.02 billion. Its revenue of $6.12 billion has grown at an

Donald Smith (Trades, Portfolio), the founder and leader of investment firm Donald Smith & Co., released his third-quarter portfolio last week, listing two new holdings.

Using a deep-value, bottom-up approach, the guru’s New York-based firm typically invests in out-of-favor stocks that are trading at a discount to tangible book value. According to the firm’s website, the portfolio managers look for opportunities among companies that are in the bottom decile of price-tangible book ratios and have a positive earnings outlook over the next two to four years.

Based on these criteria, Smith established positions in Atlas Air Worldwide

Investor Donald Smith (Trades, Portfolio), leader of Donald Smith & Co., released his second-quarter portfolio earlier this week, listing three new holdings.

Using a deep-value, bottom-up approach, the guru’s New York-based firm typically invests in out-of-favor stocks that are trading at a discount to tangible book value. According to the firm’s website, the portfolio managers look for opportunities among companies that are in the bottom decile of price-tangible-book ratios and have a positive earnings outlook over the next two to four years.

Based on these criteria, Smith established positions in Great Panther Mining Ltd. (GPL), Americas Silver

Iamgold Corp. (IAG) plummeted 5.7% to $3.79 per share in after-hours trading on Wednesday after missing consensus estimates on second-quarter earnings by 2 cents. The Canadian mid-tier gold producer also missed revenue forecasts by $26.44 million.

The miner reported a loss of 3 cents per share on revenue of $246.5 million for the quarter.

Revenue declined 11.1% year over year on the back of a lower gold sales volume of 187,000 ounces, which was down from 215,000 ounces a year ago. The decrease more than offset the 1.2% hike in the average realized price to $1,314 per ounce of gold

The conclusion of the first part of 2019 is one week behind, so we can provide a balance sheet of the best and worst performers of the period among the most-known U.S. publicly traded gold mining stocks.

Eldorado Gold (EGO) closed the first six months of 2019 being the best performer. The Canadian mid-tier gold producer increased 101% and outperformed the VanEck Vectors Gold Miners ETF (GDX) by 82.5% over the period. The share price may have been influenced by the 5-to-1 reverse stock split that took place a few days before the end of 2018.

These gold stocks also

After the closing bell on Monday, Iamgold Corp. (IAG) posted first-quarter results. Shares rose 0.34% to $2.92 in after-hours trading.

Revenue of $251 million missed expectations by $27.53 million. The Canadian miner also posted a GAAP loss of 9 cents per share and recorded adjusted earnings of 0 cents per share, lagging consensus estimates of 1 cent.

Hurt by lower sales volumes at each of its three core mines and a 1.7% drop in the realized gold price to $1,308 per ounce, revenue declined 20.2% year over year, costs increased and the operating net cash flow fell 91.7% to $8.8

Iamgold Corp. (IAG) disclosed fourth-quarter and full-year results for 2018 on Wednesday after the closing bell.

The Canadian mid-tier gold producer closed the final trimester missing consensus on non-GAAP and GAAP earnings, with a non-GAAP loss of 3 cents per share and GAAP loss of 7 cents per share. Forecasters were looking for non-GAAP and GAAP loss of 1 cent.

Revenue was $274.3 million in the final quarter of 2018, a 5.8% decline year-over-year, but the miner managed to beat consensus on revenue by $1.84 million.

Iamgold Corp. also reported figures for the entire year of 2018.

Due to higher

During the fourth quarter, Van Eck Associates Corp. moved on the following 14 precious metals producers of which it is the top institutional holder.

This information can give a useful hint to investors, helping them implement appropriate strategies for gold and silver stocks. This is because top institutional holders do comprehensive research on their companies before buying and selling shares or opening and closing a position.

During the fourth quarter, Van Eck Associates Corp. decreased its holding in:

• SSR Mining Inc. (SSRM) by 1.2% to 17,894,055 shares, or 14.89% of the company, as of Dec. 31.
• Seabridge Gold Inc.

Knowing how top institutional holders move on gold stocks can give a useful hint to investors, helping them implement appropriate strategies. This is because institutional holders do thorough research on their targets before acquiring, selling, opening a new position or selling out the shares.

Donald Smith & Co., a New York-based investment management firm with a $2.72 billion portfolio of 61 equities as of Dec. 30, focuses on deep value stocks. That is, it invests in out-of-favor companies that are in the lowest decile of price-to-tangible-book-value ratio. These stocks have been found to deliver considerably higher returns than the

Iamgold Corp. (IAG) plummeted 10.34% to $3.21 on Wednesday on the New York Stock Exchange after releasing production results for full-year 2018.

Even though the Canadian miner surpassed the midpoint of the production guidance of 850,000 to 900,000 ounces for the year, the output of 882,000 ounces of gold is not an improvement from the prior year.

The chart below illustrates the issue, which, together with an expected drop in the attributable production of gold for 2019, has impinged on the share price.

The chart below illustrates the trend in Iamgold's annual gold production from 2013 to 2018.