Alamos Gold (AGI) Flagged As Strong On High Volume
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Alamos Gold as such a stock due to the following factors:
- AGI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.9 million.
- AGI has traded 99,688 shares today.
- AGI is trading at 4.45 times the normal volume for the stock at this time of day.
- AGI is trading at a new high 5.02% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on AGI:
Alamos Gold Inc. is engaged in the acquisition, exploration, development, and extraction of precious metals, primarily gold. It owns and operates the Mulatos mine and holds the mineral rights to the Salamandra group of concessions in the State of Sonora, Mexico. The stock currently has a dividend yield of 3.3%. Currently there are 2 analysts that rate Alamos Gold a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Alamos Gold has been 944,700 shares per day over the past 30 days. Alamos has a market cap of $769.2 million and is part of the basic materials sector and metals & mining industry. Shares are down 12.3% year-to-date as of the close of trading on Friday.
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Analysis:
rates Alamos Gold as a
. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, ALAMOS GOLD INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- AGI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 37.22%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- ALAMOS GOLD INC has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ALAMOS GOLD INC swung to a loss, reporting -$0.02 versus $0.30 in the prior year.
- 37.60% is the gross profit margin for ALAMOS GOLD INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, AGI's net profit margin of -7.30% significantly underperformed when compared to the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 18.7%. Since the same quarter one year prior, revenues fell by 14.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Alamos Gold Ratings Report.
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