Earnings are about to be released. As per the earnings estimates provided for GG by Zacks, the EPS is likely to be 41 cents per share. This is a drop of 18% on a YoY basis when Gold Corp had reported EPS of 50 cents per share. This is also a drop of around 9% from the previous consensus estimate of 45 cents per share. For the full year 2013, the estimate is $1.74 per share and the revenue for the quarter is expected to decline by 2.1% to $1.32 billion ($1.35 billion YoY). For the full year 2013, the revenue is expected to be $5.81 billion. Recent drop in prices of precious metals has brought in a lot of negative sentiment and the stock is also near its 52 week low. At current levels, Goldcorp is considered a buy by more than 70% of the analysts. However, even now, GG is trading at 4.4 times sales. The fall has taken the stock to its book value, and P/E is less than 15. The debt on books is very low (D/E of 3.42) and it has nearly a billion dollars in cash. However, the prices of gold remain the key metric to watch as the sentiment will not improve till gold shows a definite sign of reversal of trend. Strategically, Goldcorp can consider buying stake in undervalued gold assets in the US. This is because the current depressing times are actually the best for acquisitions because assets with great potential are available at very low prices. Pershing Gold (PGLC) is about to start production in 2014. Pershing is available at a huge discount to its potential, especially in light of the fact that in the first year it will produce 50,000 oz. Of gold. CDE had recently bought a stake in Pershing considering the possibility of exponential capital appreciation over the next 12 months. Let us see how the earnings pan out.