NEW YORK (
-- Great Basin Gold
) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.
Highlights from the ratings report include:
- Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- GREAT BASIN GOLD LTD has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, GREAT BASIN GOLD LTD continued to lose money by earning -$0.09 versus -$0.16 in the prior year.
- Despite currently having a low debt-to-equity ratio of 0.47, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.84 is weak.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market, GREAT BASIN GOLD LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- 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 212.4% when compared to the same quarter one year ago, falling from -$6.51 million to -$20.34 million.
Great Basin Gold Limited, through its subsidiaries, engages in the acquisition, exploration, and development of gold properties. Great Basin has a market cap of $933.5 million and is part of the
industry. Shares are down 33.8% year to date as of the close of trading on Monday.
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