Trade-Ideas LLC identified

Stillwater Mining

(

SWC

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

  • SWC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.5 million.
  • SWC has traded 50,878 shares today.
  • SWC is down 3.2% today.
  • SWC was up 5.4% yesterday.

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More details on SWC:

Stillwater Mining Company engages in the development, extraction, processing, smelting, and refining of platinum group metals (PGMs). It operates through Mine Production, PGM Recycling, Canadian Properties, and South American Properties segments. Currently there is 1 analyst that rates Stillwater Mining a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Stillwater Mining has been 1.8 million shares per day over the past 30 days. Stillwater has a market cap of $1.3 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.85 and a short float of 14.7% with 7.98 days to cover. Shares are up 22.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Stillwater Mining as a

hold

. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • SWC's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 6.82, which clearly demonstrates the ability to cover short-term cash needs.
  • Despite the weak revenue results, SWC has outperformed against the industry average of 39.7%. Since the same quarter one year prior, revenues fell by 22.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Net operating cash flow has decreased to $34.74 million or 37.80% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • STILLWATER MINING CO 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, STILLWATER MINING CO swung to a loss, reporting -$0.12 versus $0.55 in the prior year. For the next year, the market is expecting a contraction of 58.3% in earnings (-$0.19 versus -$0.12).

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