November 6, 2012
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of gold and silver miner Coeur d'Alene (NYSE: CDE ) fell 23% today after reporting a surprising third-quarter loss.
So what: Third-quarter revenue fell 33% to $230.6 million, which was well below the $247.5 million analysts expected. But the big shocker was the $15.8 million, or $0.18 per share, loss the company reported. On an adjusted basis the company said it made a $0.29 per share profit versus the $0.39 expectation, but production problems and write-offs pushed the GAAP results lower.
Now what: Due to issues in production the company also lowered full-year-production guidance, which never makes investors happy. Expectations have been awfully high for Coeur d'Alene heading into 2013 and this puts those lofty expectations in question. Today's news would certainly keep me from being a buyer and I'd like to see production ramp up before investing in the stock long-term.
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