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]

Core Viewpoint - Dnow Inc. (NYSE: DNOW) has announced a $1.5 billion all-stock acquisition of MRC Global Inc. (NYSE: MRC), which could significantly impact the energy supply chain sector, leading to increased investor interest and an 11% rise in DNOW's stock year-to-date, outperforming the S&P 500's 5% increase [2][3]. Acquisition Details - MRC shareholders will receive 0.9489 shares of DNOW for each MRC share, representing an 8.5% premium to MRC's 30-day volume-weighted average price of $12.77 as of June 25 [3]. - The total enterprise value of the transaction is approximately $3.0 billion, with DNOW shareholders owning about 56.5% of the new entity post-merger [3]. Financial Performance - DNOW's revenues have shown growth, with a 4.7% increase from $2.3 billion to $2.4 billion over the last 12 months, compared to a 5.5% growth for the S&P 500 [9]. - The company has a price-to-sales (P/S) ratio of 0.7, significantly lower than the S&P 500's 3.1, indicating a potentially undervalued stock [8]. Profitability Metrics - DNOW's operating income over the last four quarters was $121 million, resulting in an operating margin of 5.0%, which is below the S&P 500's average of 14.9% [10]. - The net income margin for DNOW stands at 3.4%, compared to 11.6% for the S&P 500, highlighting weaker profitability [10]. Financial Stability - DNOW's debt was reported at $41 million, leading to a low debt-to-equity ratio of 2.6%, which is favorable compared to the S&P 500's 19.4% [11]. - The company holds $219 million in cash, contributing to a strong cash-to-assets ratio of 13.3% [11]. Market Conditions - Despite the positive developments, macroeconomic challenges persist, including a 5% decline in WTI crude prices year-to-date and potential trade tensions that could impact industrial and energy demand [4].