Tag - RGLD

Stocks started off this four-day trading week in grim fashion, as sour U.S. manufacturing data did little to ease investor fears that the recession will let up anytime soon. Add to that today’s news that the SEC charged Houston-based Stanford Financial Group with massive alleged fraud involving a multibillion-dollar investment scheme, and today’s potent cocktail sent small caps tumbling 17.05, or 3.80%, to 431.31. The Dow fell 3.25%, while the S&P 500 careened 4.08%. The major indices closed at or near the day’s lows.

For the year, the Russell 2000 (NYSE:IWM) is down 14.13%, while the Dow is down 13.95% and the S&P 500 is down 12.63%.

Manufacturing in New York contracted in February at the fastest pace on record, falling to minus 34.65. Economists expected a reading of minus 24.

General Motors (NYSE:GM) and Chrysler were in a race to finish restructuring plans to present to the federal government today but seemed unlikely to complete deals with debtholders and union workers by the government-imposed deadline. The companies planned to submit the details to the Obama administration to illustrate that the two battered automakers can return to profitability. At the close, shares of GM were down a dizzying 13.6% to $2.16. The proposal is still being hammered out.

Today gold reigned supreme, hitting a seven-month high on economic concerns fueled by the weak manufacturing data. Gold rose to $966 per ounce, and briefly touched $971 per ounce during afternoon trading. Small-cap gold companies . . .

In a fitting finish to an exasperating day, small-cap stocks collapsed in the final half-hour of trading as worries about a recession and tight credit lines clouded exuberance tied to a dramatic coordinated global rate cut ahead of this morning’s stock market open. The Russell 2000 (NYSE:IWM) closed down 12.39, or 2.22%, at 546.57, the lowest daily close since August 2004.

It was a turbulent session that saw the market sharply higher ahead of the open, sharply lower shortly after the open, solidly higher in mid-morning, sharply lower at midday, solidly higher with an hour to go, but then finally sinking back into a red sea by the close. For the year, the Russell is now down 28.6%, while the Dow is off 30.2% and the S&P 500 is down 32.9%. At the lows today, the Russell was down 37.1% from the all-time highs.

At approximately 7:00 a.m. ET this morning, the Federal Reserve slashed the target rate for fed funds to 1.5% from 2.0%, which marked the lowest level for fed funds since August 2004. At the same time, central bankers in England, Switzerland, Sweden and China also announced rate cuts, resulting in the first concerted international action on weak economic conditions since the 9/11 attacks seven years ago.

The market appeared to struggle mightily early today with whether or not the surprise global rate cut move was really enough to unclog credit lines and jolt the economy out of the grip of recession. For most of the day, the answer to those questions appeared to be “no.” However, tech stocks led the way back out of the midday slump, apparently driven by bargain hunting and by ideas that access to cheaper money would help investment in technology companies. The tech-laden Nasdaq 100 gave back a 4% afternoon rally by the close, but still managed to finish flat on the day, bouncing off five-year lows in the process. At the trough today, the Nasdaq 100 was down 42% from record highs, near levels consistent with previous recession . . .

Royal Gold, Inc. (NASDAQ: RGLD)
Denver, CO  80202
http://www.royalgold.com/

52-week low / high: $23.25 / $37.50
Shares Outstanding:  28.66 million
Market Capitalization:  $942.18 million

Royal Gold, Inc. (RGLD) acquires and manages precious metals royalties by providing financing, engaging in exploration alliances or through outright purchase of a discounted future stream of revenues from exploration and mining companies.

Royal Gold has royalty interests in at least five mining operations in Nevada, and one each in Montana, Sonora, Mexico and Santa Cruz Province, Argentina. Royalties from each vary and some are dependent on the price of the underlying precious metal, i.e., higher prices bring higher royalties. During the fiscal year ended June 30, 2007, roughly 44% of revenues came from its first property: the Pipeline Mining Complex, near Elko, Nevada.

Royal Gold seems to have uncovered the secret to making lots of money without mussing their hair.

In the fiscal year ended June 2007, revenues were $48.4 million, up 70% from $28.4 million in 2006. Net income for fiscal 2007 was $19.7 million, or $0.79 per basic share, versus $11.4 million, or $0.50 per basic share, in 2006. Fourth quarter revenue (June 30, 2007) was $14.4 million, up 76% from $8.2 million in 2006.

Also as of June 300, 2007, the company had working capital of $91 million on hand, total current assets of $95.7 million and current liabilities of $4.7 million, a current ratio of 20 to 1. The company can be summed up in one word: outstanding.

Royal Gold, Inc. (NASDAQ: RGLD)
Denver, CO  80202
http://www.royalgold.com/

52-week low / high: $23.25 / $37.50
Shares Outstanding:  28.66 million
Market Capitalization:  $942.18 million

Royal Gold, Inc. (RGLD) acquires and manages precious metals royalties by providing financing, engaging in exploration alliances or through outright purchase of a discounted future stream of revenues from exploration and mining companies.

Royal Gold has royalty interests in at least five mining operations in Nevada, and one each in Montana, Sonora, Mexico and Santa Cruz Province, Argentina. Royalties from each vary and some are dependent on the price of the underlying precious metal, i.e., higher prices bring higher royalties. During the fiscal year ended June 30, 2007, roughly 44% of revenues came from its first property: the Pipeline Mining Complex, near Elko, Nevada.

Royal Gold seems to have uncovered the secret to making lots of money without mussing their hair.

In the fiscal year ended June 2007, revenues were $48.4 million, up 70% from $28.4 million in 2006. Net income for fiscal 2007 was $19.7 million, or $0.79 per basic share, versus $11.4 million, or $0.50 per basic share, in 2006. Fourth quarter revenue (June 30, 2007) was $14.4 million, up 76% from $8.2 million in 2006.

Also as of June 300, 2007, the company had working capital of $91 million on hand, total current assets of $95.7 million and current liabilities of $4.7 million, a current ratio of 20 to 1. The company can be summed up in one word: outstanding.

Still looking for a good way to strike gold while investing in it? As gold moves solidly above $700 an ounce amid turbulence in the credit markets and on the back of a weak dollar, you don’t have to be a dyed-in-the-wool goldbug to see some merit in investing in the precious metal.
 
An efficient way to do so would be with shares of Royal Gold Inc. (Nasdaq: RGLD), which bills itself as the world’s leading publicly traded precious metals royalty company. It’s an unusual company with an unusual business strategy. How many companies can you name that have a market cap of $875 million with only $48 million in annual revenue and 14 employees?
 
Royal Gold’s revenue consists of royalty payments based on its interests in mines operated by the world’s leading gold mining companies, making it a relatively pure play on gold. As the company puts it, its sliding-scale royalties provide investors with upside leverage when gold prices rise, as they are now, while providing a floor when gold prices fall.
 
Currently, the company—which traditionally has been based on a single mining complex in Nevada—faces the happy prospect of gold reaching a new 26-year high just as the company’s recent diversification in other mining projects is beginning to pay off with these mines coming on stream.

The profit outlook has rarely been better for gold mining companies. Gold prices have risen from around $265 per ounce in 2001 to a peak of $725 in May 2006, a 25-year high, before retreating to a 2007 level of around $670 per ounce. Most industry analysts forecast continued increases in gold prices, fueled by demand for this metal in investment and technology applications, and some experts predict $1,000 per ounce gold prices by 2010.

Most of us associate gold with rings and other jewelry, and, indeed, jewelry applications are gold’s primary use, accounting for approximately two-thirds of annual gold consumption. The demand for gold in jewelry manufacturing applications is expected to remain firm because of rising jewelry sales in India and China.

Gold is also used in aerospace, electronics and healthcare applications. Demand from these sectors reached record levels of 458 tons in 2006, primarily on the strength of demand from electronics manufacturers. Gold is used in many types of electronic circuitry and is also increasingly employed in nanotechnology applications.

Gold and the U.S. dollar hold a dominant position in international finance. During periods of political and/or economic uncertainty gold prices generally rise. With the U.S. government reporting large trade imbalances and budget deficits, many foreign investors have begun purchasing gold as a hedge against long-term dollar depreciation. Investments in gold bars and coins grew 7% in tonnage terms and 45% in dollar terms in 2006. Gold’s value also rises when other investment classes such as stocks and bonds become especially volatile. Central banks and the International Monetary Fund influence world gold prices through their purchase and sale activities. While the U.S. Federal Reserve Bank holds 16% of its assets in gold, China’s central bank holds only about 1% of its assets in gold and is likely to increase gold stockpiles in the future. Gold acquisitions by central banks are expected to support rising gold prices.

April 4(SmallCapInvestor.com) – These are among the most actively traded small cap companies in pre-market trading this morning: Pacer International, Inc. (Nasdaq: PACR) ; IDM Pharma Inc. (Nasdaq: IDMI) ; Royal Gold, Inc. (Nasdaq: RGLD) ; Coldwater Creek Inc. (Nasdaq: CWTR) ; Hayes Lemmerz International, Inc. (Nasdaq: HAYZ) ; EXFO Electrical-Optical Engineering Inc. (Nasdaq: EXFO) .