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Trade-Ideas LLC identified

Primero Mining

(

PPP

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

  • PPP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.4 million.
  • PPP has traded 366,866 shares today.
  • PPP is trading at 3.56 times the normal volume for the stock at this time of day.
  • PPP is trading at a new high 16.35% 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 PPP:

TheStreet Recommends

Primero Mining Corp., a precious metals producer, engages in the acquisition, exploration, development, and operation of mineral resource properties in Canada and Mexico. It explores for gold, silver, and copper. Currently there are 3 analysts that rate Primero Mining a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Primero Mining has been 1.4 million shares per day over the past 30 days. Primero has a market cap of $337.5 million and is part of the basic materials sector and metals & mining industry. Shares are down 8.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Primero Mining as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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 467.1% when compared to the same quarter one year ago, falling from $3.59 million to -$13.17 million.
  • The gross profit margin for PRIMERO MINING CORP is rather low; currently it is at 20.30%. It has decreased significantly from the same period last year.
  • Net operating cash flow has significantly decreased to -$2.98 million or 119.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 54.14%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 500.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Metals & Mining industry and the overall market, PRIMERO MINING CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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