Trade-Ideas LLC identified

Pan American Silver

(

PAAS

) as a weak 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 $82.2 million.
  • PAAS has traded 521,827 shares today.
  • PAAS is trading at 3.03 times the normal volume for the stock at this time of day.
  • PAAS is trading at a new low 4.06% 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 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 0.3%. Currently there are 2 analysts that rate Pan American Silver a buy, 1 analyst rates it a sell, and 7 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 $2.3 billion and is part of the basic materials sector and metals & mining industry. Shares are up 131.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pan American Silver 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 also find weaknesses including weak operating cash flow and poor profit margins.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 107.69% and other important driving factors, this stock has surged by 59.65% 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.
  • 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 year. 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 ($0.01 versus -$1.50).
  • Despite the weak revenue results, PAAS has significantly outperformed against the industry average of 45.2%. Since the same quarter one year prior, revenues fell by 11.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for PAN AMERICAN SILVER CORP is currently lower than what is desirable, coming in at 29.11%. Regardless of PAAS's low profit margin, it has managed to increase from the same period last year.
  • Net operating cash flow has significantly decreased to $0.77 million or 93.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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