ABX, CECO, and AEM Earnings
Take CECO Profits!
PLAY: Sell your CECO March 22 Calls (O:CECO 10C22.00) and CECO March 20 Puts (O:CECO 10O20.00) at market, good for the day.
Dear Bottarelli Research Member,
Good morning. After yesterday’s close, Career Education Corp (CECO – NASDAQ) posted a fourth-quarter profit of $30.7 million ($0.36 per share) versus $31.2 million ($0.35 per share) one year ago. At the same time, their revenues rose 19% to $507.8 million. Since Thomson Reuters expected earnings of $0.34 on revenues of $496.8 million, this qualifies as a nice earnings beat. Also encouraging was the fact that their total student population rose 21% to 116,800 and their online student population jumped 27% to 46,200.
The basket of CECO March 22 Calls (O:CECO 10C22.00) and CECO March 20 Puts (O:CECO 10O20.00) that we entered on February 10th for $2.00 have opened the day at a total cost of $2.45. Lock in these profits now!
PLAY: Sell your CECO March 22 Calls (O:CECO 10C22.00) and CECO March 20 Puts (O:CECO 10O20.00) at market, good for the day.
Also reporting this morning was Barrick Gold (ABX – NYSE), who posted Q4 earnings of $604 million ($0.61 per share) versus $277 million ($0.32 per share) one year ago.
For quarterly profit to double year over year is very strong. And since analysts at Thomson Reuters expected ABX to post earnings of $0.57 per share, this qualifies as another earnings beat. From a net profit perspective, Barrick earned $215 million compared with a year-earlier loss of $468 million. Plus, their realized gold price in the quarter was $1,119 per ounce, way up from $809 last year. In 2010, Barrick expects gold production of 7.6 million to 8.0 million ounces at even lower total cash costs of $425 to $455 per ounce. And, as one final nugget, Barrick plans to spin off their African assets (which includes their African gold mines and exploration properties) to trade on the London Stock Exchange.
The basket of ABX March 36 Calls (O:ABX 10C36.00) and ABX March 35 Puts (O:ABX 10O35.00) that we entered on February 10th for $3.68 now trades for $3.75. Let’s hold this one for more gains.
And for all you speculators, Agnico-Eagle Mines (AEM – NYSE) reported Q4 profit that more than doubled, helped by rising gold prices and the opening of three new mines. AEM earned $47.9 million ($0.31 per share) compared with a year ago profit of $21.9 million ($0.15 per share). Since analysts at Thomson Reuters expected a profit of $0.26, this is another nice beat. AEM’s gold production rose 82% to 163,276 ounces, as the company opened three new mines in Quebec, Finland, and Mexico. And more importantly, their average realized gold prices leapt to $1,153 an ounce, way up from $789.
The AEM March 55 Puts (O:AEM 10O55.00) that we entered on February 16th for $1.50 (and conservatively sold yesterday for $1.74) are now trading between $1.60 and $1.65. If you still own these calls, get out with a small profit now!
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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