Trade-Ideas LLC identified

First Majestic Silver

(

AG

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified First Majestic Silver as such a stock due to the following factors:

  • AG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.4 million.
  • AG has traded 280,220 shares today.
  • AG is trading at 2.01 times the normal volume for the stock at this time of day.
  • AG is trading at a new low 6.11% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 AG:

First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver projects in Mexico. Currently there are 2 analysts that rate First Majestic Silver a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for First Majestic Silver has been 1.4 million shares per day over the past 30 days. First Majestic has a market cap of $459.5 million and is part of the basic materials sector and metals & mining industry. Shares are down 20.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates First Majestic Silver as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • FIRST MAJESTIC SILVER CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, FIRST MAJESTIC SILVER CORP reported poor results of -$0.53 versus -$0.33 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 134.0% when compared to the same quarter one year ago, falling from $7.59 million to -$2.58 million.
  • 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, FIRST MAJESTIC SILVER CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 63.90%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 133.33% compared to the year-earlier 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.
  • Net operating cash flow has decreased to $21.25 million or 22.74% when compared to the same quarter last year. Despite a decrease in cash flow FIRST MAJESTIC SILVER CORP is still fairing well by exceeding its industry average cash flow growth rate of -43.14%.

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