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 weak 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 $2.7 million.
- PPP has traded 259,136 shares today.
- PPP is trading at 3.70 times the normal volume for the stock at this time of day.
- PPP is trading at a new low 5.07% 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 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 1.4 million shares per day over the past 30 days. Primero has a market cap of $566.3 million and is part of the basic materials sector and metals & mining industry. Shares are down 12.8% year-to-date as of the close of trading on Wednesday.
rates Primero Mining 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:
- 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 1150.7% when compared to the same quarter one year ago, falling from $10.08 million to -$105.91 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, PRIMERO MINING 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 $12.54 million or 18.21% when compared to the same quarter last year. Despite a decrease in cash flow PRIMERO MINING CORP is still fairing well by exceeding its industry average cash flow growth rate of -38.98%.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 31.31%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 833.33% 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.
- You can view the full Primero Mining Ratings Report.