Trade-Ideas LLC identified

Silver Standard Resources

(

SSRI

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Silver Standard Resources as such a stock due to the following factors:

  • SSRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.3 million.
  • SSRI has traded 451,553 shares today.
  • SSRI is trading at 2.40 times the normal volume for the stock at this time of day.
  • SSRI is trading at a new low 4.00% 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 SSRI:

Silver Standard Resources Inc. engages in the acquisition, exploration, development, and operation of precious metal resource properties in the Americas. The company primarily explores for gold, silver, zinc, and lead deposits. Currently there are 2 analysts that rate Silver Standard Resources a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Silver Standard Resources has been 2.9 million shares per day over the past 30 days. Silver Standard has a market cap of $1.2 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of -0.24 and a short float of 1.4% with 2.17 days to cover. Shares are up 170.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Silver Standard Resources as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, 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 disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, SSRI's share price has jumped by 138.36%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.72, which clearly demonstrates the ability to cover short-term cash needs.
  • Despite the weak revenue results, SSRI has significantly outperformed against the industry average of 45.3%. Since the same quarter one year prior, revenues slightly dropped by 9.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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, SILVER STANDARD RES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $12.72 million or 58.69% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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