Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) 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 $3.6 million.
- PPP has traded 64,589 shares today.
- PPP is trading at 2.78 times the normal volume for the stock at this time of day.
- PPP is trading at a new high 6.13% 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:
Primero Mining Corp., a precious metals producer, is engaged in the acquisition, exploration, development, and production of precious metal properties in Canada and Mexico. The company explores for gold and silver. Currently there are 7 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 701,500 shares per day over the past 30 days. Primero has a market cap of $580.7 million and is part of the basic materials sector and metals & mining industry. Shares are down 26.6% year-to-date as of the close of trading on Monday.
rates Primero Mining as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- PPP's very impressive revenue growth greatly exceeded the industry average of 0.8%. Since the same quarter one year prior, revenues leaped by 51.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- PPP's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.19, which illustrates the ability to avoid short-term cash problems.
- 49.31% is the gross profit margin for PRIMERO MINING CORP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, PPP's net profit margin of 0.72% is significantly lower than the industry average.
- PRIMERO MINING 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, PRIMERO MINING CORP reported lower earnings of $0.00 versus $0.51 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 86.5% when compared to the same quarter one year ago, falling from $4.24 million to $0.57 million.
- You can view the full Primero Mining Ratings Report.