Trade-Ideas LLC identified

McEwen Mining

(

MUX

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified McEwen Mining as such a stock due to the following factors:

  • MUX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.5 million.
  • MUX has traded 1.0 million shares today.
  • MUX is trading at 3.01 times the normal volume for the stock at this time of day.
  • MUX 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 MUX:

McEwen Mining Inc. explores for, develops, produces, and sells precious and base metals in Argentina, Mexico, and the United States. It primarily explores for gold, silver, and copper. The stock currently has a dividend yield of 0.3%. Currently there is 1 analyst that rates McEwen Mining a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for McEwen Mining has been 2.4 million shares per day over the past 30 days. McEwen has a market cap of $817.3 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of -1.50 and a short float of 7.6% with 4.47 days to cover. Shares are up 200.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates McEwen Mining as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's revenue growth has not been good.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 195.78% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • MCEWEN MINING INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, MCEWEN MINING INC continued to lose money by earning -$0.06 versus -$1.04 in the prior year. This year, the market expects an improvement in earnings ($0.01 versus -$0.06).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, MCEWEN MINING INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Despite the weak revenue results, MUX has significantly outperformed against the industry average of 45.1%. Since the same quarter one year prior, revenues slightly dropped by 7.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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