CA - Newmont: Redemption Has Finally Arrived
2024-04-19 11:30:00 ET
Summary
- Newmont Corporation investors have endured a disappointing Q4 earnings report and a significant dividend cut.
- Despite that, NEM bottomed out post-earnings in February, stunning the bearish investors who wanted more carnage.
- The surge in gold prices has finally lifted NEM's fortunes, but there's still much more to go.
- Buyers who added NEM at its long-term lows have finally found redemption and vindication against all odds.
Newmont Buyers Have Been Vindicated
Newmont Corporation ( NEM ) investors who ignored the doom and gloom following NEM's fourth-quarter earnings release have done remarkably well. Investors should recall NEM's steep post-earnings selloff followed after the leading gold miner delivered a disappointing earnings scorecard with a significant dividend cut. However, the resounding bottom of NEM at its late February lows has likely stunned bearish investors who were wrong-footed at the worst possible moments. Even Argus downgraded NEM at its lows, seeing the lack of earnings clarity, worsened by a "weak" technical print that included "multi-year bearish patterns characterized by lower highs and lower lows." However, Argus's prediction has gone horribly wrong, as NEM outperformed the S&P 500 ( SP500 ) significantly from its February lows, posting a return of more than 40% through its recent April 2024 highs....
Newmont: Redemption Has Finally Arrived