Cramer is wrong here. AEM is a relatively large gold producer with good financials that will attract a lot of buying interest from hedge, mutual, and tech funds looking at gold producers as a way to play what appears to be a substantial level of inflation coming soon along with a Cental Bank that appears content to let it rise.
Combine investor interest, money flows, a much higher gold price, big EPS gains, and a share price target of above $80 a year or so out is not out of the question.
It is certainly difficult for the retail guy - regardless of research effort put forth or the knowledge level of the individual investor. The market has always been rigged, but it never been as bad as it is today. The SEC provides little protection for the retail guy. They protect the banks, brokerages and hedge funds - to hell with the middle class.
On Apr 16, 2014, Agnico Eagle and Yamana Gold Inc. (AUY) entered into an agreement to jointly acquire 100% issued and outstanding common shares of Osisko Mining Corporation for a total consideration of roughly C$3.9 billion, or C$8.15 per share ($3.55 billion or $7.43 per share). The total offer consists of about C$1 billion ($0.9 billion) in cash, roughly C$2.33 billion ($2.12 billion) in Agnico Eagle and Yamana shares, and shares of a new company with an implied value of roughly C$575 million ($523.8 million).
As Agnico Eagle has a good operating hold in Quebec, the Osisko acquisition is a strategic fit for the company which already holds a production platform in the Abitibi region. Partnering with Yamana will allow Agnico Eagle to maintain its strong balance sheet and keep its equity dilution low.
Agnico Eagle currently retains a Zacks Rank #2 (Buy).
Sentiment: Strong Buy
May 5, 2014
Agnico Eagle Mines Ltd s outperform rating reiterated at Raymond James. $39
Consensus Ratings for Agnico Eagle Mines Ltd (NYSE:AEM)
Ratings Breakdown: 1 Sell Rating(s), 8 Hold Rating(s), 12 Buy Rating(s)
Consensus Rating: Buy (Score: 2.52)
*Source ARN (Analyst Ratings Net).
Sentiment: Strong Buy
Just broke $40 during the traditionally weak summer season for gold stocks. Tomorrow Indian government expected to announce budget plans including easing of gold import tariffs along with schedule for phase out. This should drive physical demand and support mining shares. Watching fundamental drivers is advised vs. making future price predictions..