Any thoughts on NEM?

I usually prefer to stick to stocks capitalized below 5B - so NEM would typically not be something I pay much attention to.

NEM just showed up on my radar screen for the following reasons:
- Approaching long-term lows
- more up-side potential than downside
- Earnings history (PE is cheap at 10)
- Pays dividends (4 percent yield at current rate)

Am guessing Newmont is down primarily because gold is down. However, Newmont earnings don't appear to be all that correlated to the price of gold (last 3 years, gold went up 10 percent ---- Newmont went down 40 percent).

How much of this year's mined gold is tied up in futures contracts already? I like it long term for a small percentage 5%?

Don't listen to me. Denver Post says Newmont is laying off people.

4% is not bad in todays environment but 5% is my normal lower limit. Looks like it might be a decent swing trade at ~30$.

weird - layoffs are usually greeted with an increase in stock price (lower expenditures = better profit margins).

Let's do some math ----

Newmont employs 750 people in Colorado - so a 1/3 reduction is 250 jobs.

HOWEVER - Newmont employs 16,000 people world-wide ---- so 250 divided by 16,000 = 1.5 percent reduction
(which explains the lack of reaction from Wall Street analysts).

I'll sit on the sidelines until it drops to 32 (might not happen). I don't mind the price going a little above book value - but like to know what substantiates the premium.

Just noticed it hit my target price of 30 ----

Newmont hit a 52 week low, today.

There's a big concern about writedowns for the value of holdings (mines).

Am trying to figure out just how sensitive Newmont will be to such write-downs.

last 5 years, gold is up about the same proportion that Newmont is down.

(seems a little weird, since NEM is a gold company)

NEM is now 10 percent below my "put on the radar" value -

My personal arbitrary opinion is that it's of interest where it is now, and I'm downright bullish if it hits 25.