Trade-Ideas LLC identified

Pan American Silver

(

PAAS

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

  • PAAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.2 million.
  • PAAS has traded 531,592 shares today.
  • PAAS is trading at 3.45 times the normal volume for the stock at this time of day.
  • PAAS is trading at a new high 4.04% 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 PAAS:

Pan American Silver Corp., together with its subsidiaries, engages in silver mining and related activities. Its activities include the exploration, mine development, extraction, processing, refining, and reclamation of silver mines. The stock currently has a dividend yield of 0.5%. Currently there are no analysts that rate Pan American Silver a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Pan American Silver has been 2.9 million shares per day over the past 30 days. Pan American has a market cap of $1.7 billion and is part of the basic materials sector and metals & mining industry. Shares are up 68% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pan American Silver as a

sell

. The area that we feel has been the company's primary weakness has been its disappointing return on equity.

Highlights from the ratings report include:

  • 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, PAN AMERICAN SILVER CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite the weak revenue results, PAAS has significantly outperformed against the industry average of 38.1%. Since the same quarter one year prior, revenues slightly dropped by 0.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • PAAS's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period. 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.
  • PAN AMERICAN SILVER CORP 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PAN AMERICAN SILVER CORP continued to lose money by earning -$1.50 versus -$3.62 in the prior year. This year, the market expects an improvement in earnings (-$0.18 versus -$1.50).

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