Good morning!
CDE is presenting at the Loop Capital Conference this morning and I think they'll have a nice PowerPoint that will pop the stock (lots of changes recently, moving to more gold than silver) so we're going to add them to the OOP first thing.
Q1 Earnings, however, are not likely to be good so we may have to ride out a bad Q while we wait for metal prices to recover and I would have waited but worried they pop over $9 and we miss the entry but we'll take a small entry that we're happy to DD on if they go lower.
Here's a quick summary from Cap Cube:
Highlights
- Summary numbers: Revenues of USD 159.77 million, Net Earnings of USD -8.31 million.
- Gross margins widened from 0.76% to 14.06% compared to the same period last year, operating (EBITDA) margins now 26.07% from 15.07%.
- Year-on-year change in operating cash flow of -42.70% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
- Earnings growth from operating margin improvements as well as one-time items.
The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:
| 2016-12-31 | 2016-09-30 | 2016-06-30 | 2016-03-31 | 2015-12-31 | |
|---|---|---|---|---|---|
| Relevant Numbers (Quarterly) | |||||
| Revenues (mil) | 159.77 | 177.03 | 181.41 | 147.82 | 164.39 |
| Revenue Growth (%YOY) | -2.81 | 8.96 | 8.7 | -2.78 | 16.97 |
| Earnings (mil) | -8.31 | 69.56 | 14.5 | -20.4 | -303 |
| Earnings Growth (%YOY) | 97.26 | 589.18 | 186.93 | 38.73 | 71.92 |
| Net Margin (%) | -5.2 | 39.29 | 7.99 | -13.8 | -184.31 |
| EPS | -0.05 | 0.42 | 0.09 | -0.14 | -2.09 |
| Return on Equity (%) | -4.74 | 49.31 | 12.87 | -19.74 | -213.4 |
| Return on Assets (%) | -2.47 | 20 | 4.24 | -6.14 | -78.42 |
Access Capital Cube Ratings and Scores for Coeur Mining, Inc.
- Sell 10 CDE 2019 $7 puts for $2.05 ($2,050)
- Buy 15 CDE 2019 $5 calls for $3.90 ($5,850)
- Sell 15 CDE 2019 $10 calls for $2.10 ($3,150)
That's net $650 on the $7,500 spread that's $4,260 in the money to start. Worst case is owning 1,000 shares at net $7.43 (a bit cheaper than it is now) and best case is making $6,850 (1,053%) over $10. TOS says net margin is $1,110 so super-efficient too!
