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An unloved investment is one that's been beaten down – but is actually a great value. Investors then get an amazing entry point into a good long-term investment.
Money Morning Global Resource Specialist Peter Krauth recommended Goldcorp back in April when GG stock was trading at about $24.50. Goldcorp was trading this week at around $21, which means it's become an even better bargain.
Goldcorp Inc. (NYSE: GG): About the Company
Founded in 1954, Goldcorp is one of the world's top precious metal miners. It's involved in the operation, exploration, development and acquisition of precious metal properties in Canada, the United States, Mexico, and Central and South America. The Vancouver, British Columbia-based company produced 2.67 million ounces of the yellow metal in 2013, the fourth-highest amount of all the gold miners in the world. Goldcorp employs about 19,000 people and has a market cap of $17.4 billion. The CEO is Charles A. Jeannes.
Goldcorp Inc. (NYSE: GG) Stock: Why It's Unloved Right Now
Gold mining stocks trade at the mercy of gold prices, and it's no secret gold prices have struggled in recent years. Since peaking at $1,921 an ounce in 2011, gold prices have dropped almost as much as 40%, dipping below $1,150 earlier this month. Gold has come back a little, but is still hovering around $1,200 an ounce. Adding to the company's woes were lousy third-quarter earnings. Earlier this month GG reported a 63.2% plunge in earnings per share (EPS) from the same period a year ago. Goldcorp's EPS of $0.09 was just half of the $0.18 Wall Street had expected. Goldcorp stock touched a 52-week low of $17.01 on Oct. 31.
About the Author
David Zeiler, Associate Editor for Money Morning at Money Map Press, has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.