Perilous Reversal Stock: Eldorado Gold (EGO)
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Eldorado Gold as such a stock due to the following factors:
- EGO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.1 million.
- EGO has traded 171,733 shares today.
- EGO is down 3.1% today.
- EGO was up 5.3% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in EGO with the Ticky from Trade-Ideas. See the FREE profile for EGO NOW at Trade-Ideas
More details on EGO:
Eldorado Gold Corporation, together with its subsidiaries, engages in the exploration, development, and mining of gold properties in Turkey, China, Greece, Brazil, and Romania. It also explores for iron, silver, lead, and zinc. The company was formerly known as Eldorado Corporation Ltd. The stock currently has a dividend yield of 0.4%. Currently there are 4 analysts that rate Eldorado Gold a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Eldorado Gold has been 6.4 million shares per day over the past 30 days. Eldorado has a market cap of $3.0 billion and is part of the basic materials sector and metals & mining industry. Shares are up 53.5% year-to-date as of the close of trading on Tuesday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Eldorado Gold as a
. 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:
- ELDORADO GOLD 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, ELDORADO GOLD CORP swung to a loss, reporting -$2.15 versus $0.14 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 8995.9% when compared to the same quarter one year ago, falling from $13.92 million to -$1,237.96 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, ELDORADO GOLD CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $40.26 million or 31.63% when compared to the same quarter last year. Despite a decrease in cash flow of 31.63%, ELDORADO GOLD CORP is in line with the industry average cash flow growth rate of -40.05%.
- The share price of ELDORADO GOLD CORP has not done very well: it is down 21.14% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full Eldorado Gold Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
