Trade-Ideas LLC identified

Randgold Resources

(

GOLD

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Randgold Resources as such a stock due to the following factors:

  • GOLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $69.7 million.
  • GOLD has traded 226,037 shares today.
  • GOLD is down 3.1% today.
  • GOLD was up 7.1% yesterday.

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More details on GOLD:

Randgold Resources Limited explores and develops gold deposits in Sub-Saharan Africa. The stock currently has a dividend yield of 1%. GOLD has a PE ratio of 2. Currently there are 5 analysts that rate Randgold Resources a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Randgold Resources has been 850,500 shares per day over the past 30 days. Randgold has a market cap of $5.3 billion and is part of the basic materials sector and metals & mining industry. Shares are down 9.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Randgold Resources as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Metals & Mining industry average. The net income increased by 1.1% when compared to the same quarter one year prior, going from $53.00 million to $53.60 million.
  • GOLD's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • 36.74% is the gross profit margin for RANDGOLD RESOURCES LTD which we consider to be strong. Regardless of GOLD's high profit margin, it has managed to decrease from the same period last year.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, RANDGOLD RESOURCES LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Net operating cash flow has declined marginally to $71.45 million or 2.62% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, RANDGOLD RESOURCES LTD has marginally lower results.

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