Topic: Growth Stocks

IAMGold $11.98 – Toronto symbol IMG

IAMGOLD $11.98 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464- 9999; www.iamgold.com; Shares outstanding: 376.5 million; Market cap: $4.5 billion; Dividend yield: 2.1%) fell 23% after it reported cash flow of $0.30 a share in the three months ended September 30, 2012. That was down sharply from $0.46 a share a year earlier.

Gold prices remained steady, but production fell 7.7%, to 205,000 ounces from 225,000 ounces. IAMGold gets 85% of its production from mines it owns and operates, but output continues to lag at its other mines.

IAMGold’s longer-term prospects are strong—new mines will double its production within five years. It also holds cash of $1.1 billion. However, its short-term growth prospects have slowed.

IAMGold is now a hold.

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