The stock: Golden Star Resources has climbed 264% this year, more than major U.S. indices. Prior to the second-quarter, the company posted nine consecutive quarterly losses. The stock doesn't pay dividends.
The model upgraded semiconductor manufacturer Standard Microsystems (SMSC) to "hold."
The numbers: The company swung to a fiscal first-quarter loss of $9.2 million, or 42 cents a share, from a profit of $4.5 million, or 20 cents a share, in the year-earlier period. Revenue declined 33% to $62 million. Its gross margin dropped from 56% to 52% and its operating margin descended into negative territory. A quick ratio of 2.1 demonstrates strong liquidity and the company holds no debt.
The stock: Standard Microsystems has risen 47% this year, outpacing major U.S. indices. The company has posted two consecutive quarterly losses. The stock doesn't pay dividends.The model downgraded oil and gas transporter Knightsbridge Tankers (VLCCF) to "sell." The numbers: Second-quarter net income plummeted 78% to $3.1 million, or 18 cents a share, as revenue fell 36% to $14 million. Its gross margin decreased from 82% to 52% and its operating margin dropped from 65% to 25%. The company holds $47 million of cash, compared to $99 million of debt. A debt-to-equity ratio of 0.4 reflects a balanced capital structure. The stock: Knightsbridge Tankers is down 7% this year, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 8, a discount to the market and oil and gas transportation peers. The company has not paid a dividend since February.