Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Primero Mining, Williams-Sonoma, and Callon Petroleum Jumped Today

By Dan Caplinger - Mar 13, 2014 at 8:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The broader stock market plunged on fears that the situation in Ukraine could deteriorate toward an extended military conflict, but these stocks bucked the trend and finished strongly higher. Find out more about what made these stocks soar.

The stock market plunged today, with the Dow closing down more than 230 points, and major market averages falling 1% to 1.5%. Despite solid economic data on U.S. retail sales, investors responded to a worsening situation between Russia and Ukraine, with the prospects of more extensive military activity raising fears that the initially hoped-for quick resolution to the dispute might not come. Yet, even amid the turmoil in the broader market, Primero Mining ( PPP ), Williams-Sonoma ( WSM -1.98% ), and Callon Petroleum ( CPE -1.67% ) all posted strong gains, with company-specific good news outweighing the impact of the overall market's decline.

Primero Mining jumped 11% after the precious-metals miner said that it had met its annual threshold of silver production under its silver-streaming contract with Silver Wheaton ( WPM -0.57% ), thereby allowing Primero to sell half of the silver produced at its San Dimas mine at the full spot price. In its contract with Primero, Silver Wheaton obtained the rights to all of the first 3.5 million ounces of annual production, paying just $4.04 per ounce plus an inflation adjustment. With San Dimas having gone above the threshold, Primero only has to sell 50% of its excess production, and investors applauded the smaller obligation given how early in the contract year Primero achieved the threshold.

Williams-Sonoma gained almost 10% following the home-furnishings retailer's fourth-quarter earnings report last night. Same-store sales were up across all of the company's divisions, with particularly strong comps of 18.3% for its West Elm furniture division, and 14.6% for Pottery Barn. Overall, 10.4% growth in comps led to better-than-expected results for both revenue and earnings, and even though Williams-Sonoma also issued guidance for the current quarter and the full fiscal year that was, in some cases, below analyst consensus, the company has a history of being conservative in its predictions. The retailer also raised its dividend, and as long as consumers keep spending, Williams-Sonoma is in a good position to capitalize from strong home sales and the accompanying projects to furnish those homes.

Callon Petroleum rose more than 9% as the Mississippi-based oil and gas exploration company reported its latest results. Revenue declined 8%, but a substantial part of that decline came from the sale of offshore fields that reduced overall production levels. Even though adjusted net income came in at break-even levels, most investors had expected Callon to lose money, and the company has done a good job of keeping production levels up overall. With the company having done so well even in a somewhat difficult pricing environment for the industry, Callon could have more room to run in the future. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Primero Mining Corp. Stock Quote
Primero Mining Corp.
PPP
Wheaton Precious Metals Corp. Stock Quote
Wheaton Precious Metals Corp.
WPM
$39.85 (-0.57%) $0.23
Williams-Sonoma, Inc. Stock Quote
Williams-Sonoma, Inc.
WSM
$181.00 (-1.98%) $-3.66
Callon Petroleum Company Stock Quote
Callon Petroleum Company
CPE
$47.19 (-1.67%) $0.80

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
624%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/05/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.