(AU) AngloGold Ashanti Ltd. – Momentum – Zacks Rank Buy

June 29th, 2009

AngloGold Ashanti Ltd. (AU) has posted solid gains since first being featured as a momentum stock on Feb 9 in response to the company’s strong first-quarter results, reported on May 15.

First-Quarter Results

Income was up huge from last year, coming in at $150 million from a loss of $17 million. Earnings totaled 42 cents per share, up from a 5 cent loss last year.

The company said that it benefited from higher spot gold prices Incorporatedreased production and a lower discount rate.

Estimates

The current-year estimate has been mostly flat for the last few months, currently up 6 cents from 90 days ago to $2.31 per share. The next-year estimate is up 34 cents to $2.27, but should be taken with a grain of salt. This earnings target will fluctuate significantly with underlying gold prices, the primary driver of this stock’s performance.

The Chart

Shares of AU have been trending higher since bottoming out just above $13 last November, having since topped the $43 mark. Shares have since pulled back a bit, but remain in elevated territory. Take a look at the chart below.


Zacks Investment Research
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More on this topic (What's this?)
AngloGold Ashanti: Getting Paid for Risk (Contrarian Profits, 7/31/09)
Quick Update on Position (Centrifugal Deforest, 6/2/09)
Hedge Fund Paulson & Co (John Paulson) Files 13G on AngloGold Ashanti (AU) (market folly, 6/2/09)
Paulson & Co Hedge Fund Files 13G on anglogold Ashanti (Hedge Fund Blogs From HedgeCo.Net, 6/2/09)
Read more on AngloGold Ashanti at Wikinvest

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