Why Endeavour Silver, AuRico Gold, and Fred's Soared Today

The stock market plunged after news of a Malaysian airliner crashing in Ukraine, but these stocks still managed to post solid gains on the day. Find out more about what made them soar.

Jul 17, 2014 at 6:25PM
Longview

After celebrating new all-time record highs for the Dow yesterday, the stock market fell sharply Thursday, as geopolitical issues once again reared their ugly head, and spoiled otherwise positive sentiment from earnings season and the overall state of the U.S. economy. A Malaysian jet crashed earlier today in the eastern part of Ukraine, and world leaders were reluctant to speculate on whether the cause was an accident, or a deliberate attack on the part of groups involved in the conflict in the region. Despite the pressure on the overall market, some stocks still gained, with Endeavour Silver (NYSE:EXK), AuRico Gold (NYSE:AUQ), and Fred's (NASDAQ:FRED) climbing Thursday.

Exk
Source: Endeavour Silver.

Endeavour Silver climbed 7% on a good day for silver stocks generally, as conflict around the world has tended to support precious-metals prices in the past, and did so again today. Endeavour, in particular, tends to move more sharply than other mining stocks when silver prices move, given its relatively small size and its cost structure. Endeavour has climbed to its best levels in more than a year, with the company reporting last week that its second-quarter silver production was up 9% from the year-ago quarter, even though gold production dropped by almost 25%. With plans to turn its effort more toward the exploratory side of the business, Endeavour appears to be pulling out of the decline that last year's plunge in silver prices caused. The stock's prospects look attractive if you believe that silver prices will hold onto their gains and continue to advance from current levels.

Gold And Silver

Image sources: Wikimedia Commons; Creative Commons/Armin Kubelbeck.

Along the same lines, AuRico Gold gained 6.5% after announcing preliminary second-quarter production results last night. Record production at the company's key Young-Davidson mine helped send overall gold production up 17%. The stock managed to overcome a couple of negative points, including the fact that production at its El Chanate mine declined, and overall cash costs jumped by almost $150 per ounce to climb above $800 in the most-recent quarter. Nevertheless, with costs expected to decline through the remainder of the year, and with prospects at Young-Davidson continuing to look favorable, AuRico has the potential for even further gains if the gold market cooperates.

Finally, retailer Fred's rose 9% after reports that private-equity firm Sycamore Partners is looking to acquire the company. Sources for the Reuters report said that no deal is imminent, and that the parties might end up backing away from a deal; but Fred's has been looking at a potential sale or other strategic options for months now. With weak results, Fred's has suffered from competition from dollar-store discounters, but Sycamore has a history of working with struggling companies in the apparel area, and could end up helping the business recover -- even if shareholders only end up with a taste of the resulting profits before the company goes private.

Warren Buffett: This new technology is a "real threat"
At his recent annual meeting, Warren Buffett admitted this emerging technology is threatening his biggest cash cow. While Buffett shakes in his billionaire boots, only a few investors are embracing this new market, which experts say will be worth more than $2 trillion. Find out how you can cash in on this technology before the crowd catches on, by jumping into one company that could get you the biggest piece of the action. Click here to access a FREE investor alert on the company we're calling the "brains behind" the technology.

Dan Caplinger 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers