Trade-Ideas LLC identified

Coeur Mining

(

CDE

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

  • CDE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.3 million.
  • CDE has traded 566,956 shares today.
  • CDE is down 3.8% today.
  • CDE was up 13% yesterday.

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More details on CDE:

Coeur Mining, Inc., through its subsidiaries, engages in the ownership, operation, exploration, and development of silver and gold mining properties primarily in the United States, Mexico, Bolivia, Argentina, Australia, Ecuador, Chile, and New Zealand. Currently there are 4 analysts that rate Coeur Mining a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for Coeur Mining has been 3.6 million shares per day over the past 30 days. Coeur has a market cap of $378.4 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of -0.16 and a short float of 17.6% with 2.59 days to cover. Shares are down 38.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Coeur Mining as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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, COEUR MINING INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for COEUR MINING INC is currently lower than what is desirable, coming in at 28.37%. Regardless of CDE's low profit margin, it has managed to increase from the same period last year.
  • CDE's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 49.85%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • COEUR MINING INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COEUR MINING INC reported poor results of -$11.28 versus -$6.44 in the prior year. This year, the market expects an improvement in earnings (-$0.78 versus -$11.28).
  • CDE's debt-to-equity ratio of 0.75 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that CDE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.08 is high and demonstrates strong liquidity.

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