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 miner Compania de Minas Buenaventura SAA (ADR) (NYSE:BVN) fell as much as 11.5% today after releasing earnings.
So what: First quarter revenue fell 20% from a year ago to $282 million and net income swung from a $102.7 million profit to a $16.1 million loss, or $0.06 per share. Analysts were expecting earnings of $0.25 per share on revenue of $327.8 million.
Now what: Everything is working against Buenaventura from production to precious metal prices. I don't see a reason to think prices will rise in the next year so even an increase in production from the Brocal expansion doesn't give me much incentive to buy. This is a stock I'll stay out of and think the $3.0 billion price tag is still high for the trends investors are facing in the precious metals market.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.