Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of precious metals miner Coeur Mining Inc jumped 11% today on a strong day in the commodity market.
So what: During today's trading, gold jumped 1.1% to $1,214.10 per ounce and silver was up 1.4% to $16.94 per ounce, although the day's high was $17.31. After the market closed, management also gave its production update for the first quarter and reiterated its 2015 production outlook of 14.8 million-16 million ounces of silver and 294,000-323,000 ounces of gold.
Now what: Any upward price movement would be good for Coeur because the company reported a loss in every quarter in 2014 and is expected to lose money the next two years as well. The reality is that a small move of a percentage point or two isn't going to bring the company up to profitability, even though the market is excited about it today. I would leave this move alone and wouldn't jump into miners unless there's a long move higher for precious metals, which I don't see coming anytime soon.
The article Why Shares of Coeur Mining Inc Jumped Today originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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