NEW YORK (TheStreet) -- In a Sept. 21 story on silver plays, we highlighted Silver Standard Resources (SSRI) . SSRI has tested the $7 level at least five times in the past nine months, but the rally to $7.24 today appears to be an upside breakout from its sideways market.
A bit more chart history suggests we could rally to the $10-$11 area for starters. See the chart below.
Separately, TheStreet Ratings team rates SILVER STANDARD RES INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
We rate SILVER STANDARD RES INC (SSRI) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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.
- After a year of stock price fluctuations, the net result is that SSRI's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- SILVER STANDARD RES INC has improved earnings per share by 30.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, SILVER STANDARD RES INC continued to lose money by earning -$1.55 versus -$2.79 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 27.9% when compared to the same quarter one year prior, rising from -$10.16 million to -$7.33 million.
- 38.61% is the gross profit margin for SILVER STANDARD RES INC which we consider to be strong. It has increased significantly from the same period last year.
- You can view the full analysis from the report here: SSRI