Week ahead: Resilient gold to boost Randgold? Apple to help ARM? Glencore updates


(MENAFN- ProactiveInvestors)

Gold slid down to US$1241 per ounce on Friday after a stronger than expected US non-farms payroll number but the precious metal has been on the rise in recent months.

The uptrend has helped Randgold Resources (LON:RRS) which sends out fourth quarter results on Monday.

It’s one of the few companies in the mining sector that can be viewed relatively optimistically at the moment.

Despite the steep fall in the price of gold since a few years ago the group has continued to invest in facilities and new resources. This has led to the company setting new production records each quarter over the last year. 

“We shouldn’t be surprised to see more of the same in these results and the recent moderate recovery in the price of gold should help its margins further” said broker The Share Centre.

IG added that Randgold is the best performing mining stock in the FTSE by a healthy margin but this has not been enough to encourage institutional analysts.

Of those rating the company eight have them as a buy 11 as a hold and two as a sell.

It is also worth noting that the average price target for the next twelve months is £52.31 – over £3 below the current share price.

On Wednesday Apple’s record quarter should be reflected in the makers of its parts and chip designers ARM Holdings (LON:ARM)

Investors will also look out for new licensing awards along with the prospect for royalties down the line. 

Apparently there has been a lot of excitement about the group’s latest set of chips that are supposed to be much faster and more energy efficient so investors will look out for commentary from management on this.

On Thursday it’s Glencore’s turn to send out results.

Broker The Share Centre adds that the diverse nature of this company hasn’t necessarily helped its sales and earnings as most commodities including oil have fallen during 2014. 

However investors will hope that cost cutting and production increases may help mitigate the impact of price falls. 

It is hoped that Glencore’s trading division would make up for weakness elsewhere and investors will want details of acquisitions and disposals the business has made. 

Also worth noting will be whether it is still likely to look at exposing itself to the iron ore market after the Rio Tinto talks amounted to nothing.

Monday

Interims: Randgold Resources (LON:RRS)

Economic announcements: German imports/exports UK retail sales 

Tuesday

Finals: Catlin Group (LON:CGL)

Economic announcements: China employment stats UK industrial production 

Wednesday

Interims: ARM Holdings (LON:ARM) Tullow Oil (LON:TLW) Reckitt Benckiser (LON:RB.) RedRow (LON:RDW)

IMS: Thomas Cook (LON:TCG) QinetiQ Group (LON:QQ.)

Economic announcements: US mortgage market index US crude oil inventories UK house price data

Thursday 

Interims: Imperial Tobacco (LON:IMT) Glencore (LON:GLEN) Rio Tinto (LON:RIO) Shire (LON:SHP)

IMS: SSE (LON:SSE)

Economic announcements: Eurozone industrial production US retail sales

Friday

IMS: Severn Trent (LON:SVT)

Finals: Anglo American (LON:AAL) Rolls Royce (RR.)

Economic announcements: French employment figures Eurozone GDP US import/export figures 

 

 

 


ProactiveInvestors - UK

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