NEW YORK, Feb 14 (Reuters) - The stock of Barrick Gold , the world's largest gold producer, is set to rally if it returns to its historical trading pattern with shares of fellow miner Freeport McMoRan Copper & Gold, Barron's business newspaper said on Sunday.
It noted that Barrick's stock price has hardly moved in the last year, while Freeport's has improved 172 percent.
'This performance is not the norm. The two stocks often trade in lockstep,' Barron's said. 'The divergence has occurredbecause copper has far outperformed gold in the past year.'
The newspaper quoted Ed Shill, chief investment officer at QCI Asset Management, as saying when Barrick and Freeport's shares have previously diverged, they have subsequently returned to their historical relationship.
Shill believes this will happen again and he has purchased Barrick stock and sold his Freeport position.
'If Barrick rallies and catches up to gold prices and gold rallies to catch back up to copper prices, Barrick stock, recently at $37, could be back at $45 in no time at all,' Barron's said.
(Reporting by Steve James; Editing by Richard Chang) Keywords: BARRICK/ (steve.james@thomsonreuters.com; +1 646-223-6013; Reuters Messaging: steve.james.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
It noted that Barrick's stock price has hardly moved in the last year, while Freeport's has improved 172 percent.
'This performance is not the norm. The two stocks often trade in lockstep,' Barron's said. 'The divergence has occurredbecause copper has far outperformed gold in the past year.'
The newspaper quoted Ed Shill, chief investment officer at QCI Asset Management, as saying when Barrick and Freeport's shares have previously diverged, they have subsequently returned to their historical relationship.
Shill believes this will happen again and he has purchased Barrick stock and sold his Freeport position.
'If Barrick rallies and catches up to gold prices and gold rallies to catch back up to copper prices, Barrick stock, recently at $37, could be back at $45 in no time at all,' Barron's said.
(Reporting by Steve James; Editing by Richard Chang) Keywords: BARRICK/ (steve.james@thomsonreuters.com; +1 646-223-6013; Reuters Messaging: steve.james.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.