Steady Return Stock - KGC

The steady return stock of the day is Kinross Gold Corp. (KGC), the Toronto, Canada based Gold and Silver mining company. The rising gold price for the past year has turned the stock into a growing one since September of last year. Despite pull back today on falling metal price the stock overall is still a safe one to own as it is identified as a steady stock:

Technical
Despite some ups and downs, the 52 weeks chart still shows this is a steady return stocks as first of all the 50 day and 200 day moving average have been rising steadily since last November. Secondly during the past 52 weeks, the range between 50 day and 200 day moving average is betwwen $1 to $2.5 - slightly volatile but still with reasonable range. Thirdly, despite peaks in February, May and earlier this month most other times the stock stay relatively close to 50 day moving average except in June when the stock dropped near 200 day moving average. With the three stable criteria met, we could say the stock is quite stable technically.

Financial
The financial statement shows steady increase in revenue for the past three years from $579 million in 2003, $684 million in 2004 to $730 million in 2005. However during the same period, net loss actually has increased from $16 million in 2003 to $186 million in 2005, more than 10 times in just two years. Therefore the company were selling stock and borrowing money to maintain a good look on the balance.

Steady Return Stock Rating(1 ~ 5, 5 means highest):
1. Market Potential(Gold): 4.5
2. Technical: 4
3. Financial: 3.5
Overall Rating: A-