Barrick Gold Corporation (USA) ($ABX) Target: $17 Confident Investor Rating: Fair

Company name Barrick Gold Corporation (USA)
Stock ticker ABX
Live stock price [stckqut]ABX[/stckqut]
P/E compared to competitors Good
MANAGEMENT EXECUTION
Employee productivity Good
Sales growth Good
EPS growth Poor
P/E growth Poor
EBIT growth Poor
ANALYSIS
Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $0.58
Target stock price (averages with growth) $5.55
Target stock price (averages with no growth) $15.4
Target stock price (manual assumptions) $41.8

The following company description is from Google Finance: http://www.google.com/finance?q=abx
Barrick Gold Corporation (Barrick) is engaged the production and sale of gold, as well as related activities, such as exploration and mine development. Barrick also produces copper, and hold interests in oil and gas properties located in Canada. Its producing mines are concentrated in four regional business units: North America, South America, Africa and Australia Pacific. In addition, it has a Capital Projects segment, distinct from its regional business units, to focus on managing projects. On September 17, 2009, the Company completed the acquisition of 50% interest in the Valhalla oil and gas field. On April 22, 2009, it completed the acquisition of the remaining 50% interest in the Williams and David Bell gold mines (Hemlo) in Canada from Teck Resources Ltd., thereby increasing its interest to 100%.


Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. Jim Cramer interviewed the CEO of this company yesterday and Mr. Cramer seems rather bullish. While this company isn't a terrible play in gold, this analysis shows that they aren't incredibly well run and you may want to just stick with the gold ETF [stckqut]GLD[/stckqut] for your precious metal play. I cannot echo Mr. Cramer's enthusiasm for this company.

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