Globe says Gray sees interest in New Gold growing

2009-07-22 07:46 ET - In the News

The Globe and Mail reports in its Tuesday edition that New Gold jumped 16 cents to close Monday on the Toronto Stock Exchange at $3.18. The Globe's Allan Robinson writes in the Eye On Equities column the stock has a one-year range of 94 cents to $7.92. Blackmont Capital analyst Richard Gray notes that New Gold failed to meet his second quarter production outlook. He says, however, the results for the second half should improve. He says interest in the shares should also grow as annual gold production increases to about 400,000 ounces by 2010 from 300,000 in 2009. The Blackmont analyst says he is maintaining his rating on New Gold at "outperform." As well, he continues to target the stock at $4. Macquarie Securities quantitative strategist Yin Luo recommended buying New Gold in The Globe's Number Cruncher column on July 10. The stock was then trading at $2.87. The stock was trading at $3.11 on June 17 when The Globe's Shirley Won figured in the Number Cruncher column that New Gold was a good stock to own. Ms. Won, citing unnamed bullish gold observers, recommended buying New Gold in the Cruncher column on March 5 when it could be had for $2.05. Ms. Won said profit-taking action represented a buying opportunity.