Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on New Gold (NGD), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank to make informed investment decisions [1][5]. Brokerage Recommendations for New Gold - New Gold has an average brokerage recommendation (ABR) of 1.56, indicating a position between Strong Buy and Buy, based on recommendations from nine brokerage firms [2]. - Among the nine recommendations, six are classified as Strong Buy and one as Buy, which accounts for 66.7% and 11.1% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Sole reliance on brokerage recommendations for investment decisions may not be wise, as studies indicate limited success in guiding investors towards stocks with the best price increase potential [5]. - Brokerage firms often exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [6][11]. Zacks Rank as an Alternative - The Zacks Rank, which classifies stocks into five groups based on earnings estimate revisions, is presented as a more reliable indicator of near-term price performance compared to ABR [8][12]. - The Zacks Rank is timely and reflects the latest earnings estimate revisions, making it a better tool for predicting future stock prices [13]. Current Earnings Estimates for New Gold - The Zacks Consensus Estimate for New Gold has increased by 1.2% over the past month to $0.58, indicating growing optimism among analysts regarding the company's earnings prospects [14]. - This increase in consensus estimates, along with other factors, has resulted in a Zacks Rank of 2 (Buy) for New Gold, suggesting that the Buy-equivalent ABR may be a useful guide for investors [15].

Core Insights - Coeur Mining, Inc. (NYSE:CDE) is recognized as one of the 13 best gold mining companies to invest in currently, with Roth MKM raising its price target from $20 to $23 while maintaining a Buy rating [1] Acquisition Details - Coeur Mining has entered into a definitive agreement to acquire all issued and outstanding shares of New Gold Inc. (NYSEAMERICAN:NGD) through a wholly-owned subsidiary, following a court-approved plan of arrangement [2] Market Impact - The acquisition is expected to create a new North American senior mining company with an estimated market capitalization of $20 billion, projected to produce approximately 1.25 million gold equivalent ounces in 2026, including 20 million ounces of silver and 900,000 ounces of gold [3] - The combined entity is anticipated to generate over 80% of its revenue from the US and Canada, alongside strong free cash flow generation [3] Financial Projections - The new company is projected to generate around $3 billion in EBITDA and about $2 billion in free cash flow in 2026, significantly higher than Coeur Mining's expected EBITDA of $1 billion and free cash flow of approximately $550 million for the full year of 2025 [4] - The transaction is expected to result in lower costs and improved margins for the combined company [4]

Core Viewpoint - New Gold Inc (NYSEAMERICAN: NGD) has experienced a significant stock increase of approximately 266% year-to-date, with a recent uptick of over 10% in the last five sessions, indicating strong buyer interest and potential for further gains [1][2]. Group 1: Stock Performance and Market Sentiment - The upcoming earnings report on February 18 is expected to influence NGD stock positively, as a favorable outcome could enhance the already bullish sentiment surrounding the stock [2]. - The recent rally in gold and silver prices is contributing to the positive market sentiment, which may continue into the new year [2]. Group 2: Acquisition Details - Coeur Mining, Inc. (NYSE:CDE) announced an all-stock acquisition of New Gold valued at approximately $7 billion, with an exchange ratio that values NGD at $8.51 per share, representing an 8% premium over the current stock price [3]. Group 3: Volatility and Price Movement - Expected move calculators predict a 19.1% price movement for NGD stock following the February earnings disclosure, indicating potential volatility [5]. - Implied volatility (IV) provides insights into expected price dispersion, although it does not directly indicate the likelihood of specific outcomes [6][7]. Group 4: Price Projections and Trading Strategies - The forward 10-week returns for NGD stock are projected to range between $8.80 and $10, with price clustering likely around $9.30 [11]. - A unique 4-6-U quant signal indicates that despite fewer up weeks, the stock price has trended upward, suggesting continued bullish potential [12]. - A trading strategy targeting a $10 strike price through a 9/10 bull call spread expiring February 20, 2026, is suggested, with a maximum payout of about 43% [14]. - An alternative strategy involving a 9/11 bull call spread is also proposed, requiring NGD stock to rise through $11 at expiration, with a potential maximum payout of roughly 111% [18].

Core Viewpoint - New Gold Inc. has announced a transaction where Coeur Mining, Inc. will acquire all outstanding shares of New Gold, with shareholders receiving 0.4959 shares of Coeur for each New Gold share held, resulting in New Gold shareholders owning approximately 38% of the combined company post-transaction [1][16]. Strategic Rationale - The transaction aims to create a leading North American precious metals mining company with a pro forma combined equity market capitalization of approximately $20 billion, including seven high-quality operations expected to produce around 1.25 million gold equivalent ounces in 2026 [5]. - The combined company is projected to generate approximately $3.0 billion in EBITDA and about $2.0 billion in free cash flow in 2026, enhancing financial strength and shareholder returns [5]. - The merger will provide greater exposure to long-life, low-risk North American assets, improving the reserve and resource profile, and supporting sustainable free cash flow [5]. - The combined entity is expected to rank among the top 10 largest precious metals companies and top five global silver producers, enhancing trading liquidity and capital market exposure [5]. Board Recommendation - The Board of Directors of New Gold unanimously recommends that shareholders vote "FOR" the transaction, emphasizing the potential for value creation and exploration upside from existing operations [2][6]. Meeting and Voting Details - A special meeting for New Gold shareholders is scheduled for January 27, 2026, to approve the transaction, with voting materials already mailed to eligible shareholders [7][18]. - Shareholders must vote by 11:00 a.m. (Eastern Time) on January 23, 2026, to participate in the meeting [8]. Regulatory Approvals - The transaction is subject to various approvals, including those from New Gold and Coeur shareholders, the Supreme Court of British Columbia, and applicable regulatory bodies [19][21].

Core Insights - New Gold Inc. (NYSE:NGD) is highlighted as one of the 12 cheap gold stocks to consider for investment [1] - The company's share price surged to a 52-week high of $8.85, reflecting a 172% gain over the past year and a 239% increase in 2025 [2] - TD Securities upgraded New Gold's stock from "Hold" to "Buy," raising the price target from $7.50 to $12.00, influenced by a proposed acquisition by Coeur Mining [3] Acquisition Details - Coeur Mining and New Gold entered a definitive agreement for Coeur's subsidiary to acquire all outstanding New Gold shares, offering 0.4959 shares of Coeur common stock for each New Gold share, equating to $8.51 per share, a 16% premium over the closing price on October 31, 2025 [4] - The acquisition is expected to create a leading North American precious metals producer with a pro forma market capitalization of approximately $20 billion, seven high-quality operations, an expected 2026 EBITDA of $3 billion, and around $2 billion of free cash flow in 2026 [5] Company Overview - New Gold Inc. is a Canadian-focused intermediate gold mining company, primarily operating the New Afton copper-gold mine and the Rainy River gold mine [6]

Group 1 - New Gold Inc. (NYSEAmerican:NGD) reached a 12-year high, closing at $8.55 after a 9.20% increase, driven by investor interest following the Federal Reserve's interest rate cut [1][2] - The Federal Reserve cut the benchmark rates by 25 basis points, marking the third and final rate cut for the year, which is expected to benefit mining companies like New Gold due to a weaker US dollar [2] - New Gold Inc. operates the Rainy River mine in Ontario and the New Afton mine in British Columbia, focusing on gold, silver, and copper mining [3] Group 2 - New Gold is set to be acquired by Coeur Mining, Inc. for $7 billion, with shareholders receiving 0.4959 Coeur shares for each NGD share they own [4]

Core Viewpoint - New Gold Inc. has shown significant stock performance with a 203.43% increase over the past year, leading to optimism among long-term shareholders, while concerns about potential overvaluation arise from the price-to-earnings (P/E) ratio analysis [1]. Group 1: Stock Performance - The current trading price of New Gold Inc. is $8.40, reflecting a 7.34% increase in the current session [1]. - Over the past month, the stock has increased by 15.61% [1]. - The stock has experienced a remarkable 203.43% increase over the past year [1]. Group 2: P/E Ratio Analysis - New Gold has a lower P/E ratio compared to the aggregate P/E of 34.95 for the Metals & Mining industry, which may suggest the stock is undervalued [6]. - A lower P/E ratio could indicate that shareholders do not expect the stock to perform better in the future, or it may reflect undervaluation [5][6]. - The P/E ratio is a useful metric for assessing market performance but should not be used in isolation; other factors like industry trends and business cycles also influence stock prices [9][10].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on New Gold (NGD), and emphasizes the importance of using these recommendations in conjunction with other analytical tools for making investment decisions [1][5]. Group 1: Brokerage Recommendations - New Gold has an average brokerage recommendation (ABR) of 1.56, indicating a position between Strong Buy and Buy, based on recommendations from nine brokerage firms [2]. - Of the nine recommendations, six are Strong Buy and one is Buy, which accounts for 66.7% and 11.1% of all recommendations respectively [2]. Group 2: Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations may not be advisable, as studies indicate they often fail to guide investors toward stocks with the highest potential for price appreciation [5]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" [6][11]. Group 3: Zacks Rank as an Alternative - The Zacks Rank, which classifies stocks into five groups based on earnings estimate revisions, is presented as a more reliable indicator of near-term price performance compared to ABR [8][12]. - The Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, making it a more effective tool for predicting future price movements [13]. Group 4: New Gold's Earnings Estimates - The Zacks Consensus Estimate for New Gold has increased by 4.2% over the past month to $0.58, indicating growing optimism among analysts regarding the company's earnings prospects [14]. - This increase in consensus estimates has contributed to a Zacks Rank of 2 (Buy) for New Gold, suggesting that the Buy-equivalent ABR may be a useful guide for investors [15].

Group 1: Market Movements - Wanda Hotel Development (00169) saw a significant increase, rising over 20% during trading, attributed to an agreement with Sony's CPE for a 49% stake in Vampire Squid Productions, which operates the "Octonauts" IP [1] - Cat's Eye Entertainment (01896) rose over 5.3% following the announcement of the film "Demon Slayer: Infinity Castle Chapter One" set to release on November 14, with over 142,000 new views recorded on the platform [1] - Baidu Group-SW (09888) increased by 6.6% after its subsidiary reported over 250,000 orders completed by fully autonomous vehicles, marking a significant step in the commercialization of autonomous driving [1] - Semiconductor stocks experienced gains, with Huahong Semiconductor (01347) up 2.14%, Shanghai Fudan (01385) nearly 1%, and SMIC (00981) up 1.37%, driven by a continued demand for memory chips and price increases planned by several manufacturers [1] Group 2: Gold and Oil Stocks - Gold stocks continued to decline, with Lingbao Gold (03330) down 4.46% and China Gold International (02099) down 2.41%, as spot gold prices fell below $3,980 per ounce, a drop of over 9% from the high on October 20 [2] - Oil stocks rose, with PetroChina (00857) up 3.14% and Sinopec (00386) up 1.66%, following OPEC+'s announcement to pause production increases in Q1 2024, leading Morgan Stanley to raise its short-term oil price forecast [3] Group 3: Automotive and Technology Developments - Li Auto-W (02015) fell 3.3%, with a reported 38% year-on-year decline in new car deliveries for October, alongside a recall announcement for the MEGA 2024 model due to coolant issues [3] - Hesai Technology (02525) rose over 2% after announcing a strategic partnership with Guanghetong to develop a multi-modal perception and control solution based on lidar technology [3] Group 4: US Market Highlights - Atour (ATAT.US) increased by over 5.8%, supported by China's 14th Five-Year Plan aimed at boosting consumption [5] - NIO (NIO.US) rose over 2.3% with a 92.6% year-on-year increase in new car deliveries for October [5] - Micron Technology (MU.US) gained over 4.8% as Samsung paused DDR5 DRAM contract quotes, impacting the supply chain [5] - Nokia (NOK.US) rose over 3.4% following a $1 billion investment from Nvidia to accelerate AI-RAN innovations [6]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and improve content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]