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 Allied Nevada Gold (NYSEMKT: ANV) dropped 23% today after reporting earnings.
So what: Second-quarter revenue rose 75% from a year ago to $59.0 million and net income was $4.2 million, or $0.04 per share. But analysts expected a far more robust $81.4 million in revenue and $0.08 per share in earnings, which caused the big drop today.
Now what: Management also announced the delay of construction of a mill at Hycroft until it can study the plan more. Low gold and silver prices are affecting revenue and the return on investment has fallen along with prices. I don't think gold prices are going to recover because the economy is slowly improving, which will keep me out of this miner, particularly when considering the low profit, even at last quarter's prices.