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Trade-Ideas LLC identified

Primero Mining

(

PPP

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

  • PPP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
  • PPP has traded 105,748 shares today.
  • PPP is trading at 2.01 times the normal volume for the stock at this time of day.
  • PPP is trading at a new low 6.47% 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 PPP:

TheStreet Recommends

Primero Mining Corp., a precious metals producer, engages in the acquisition, exploration, development, and operation of mineral resource properties in Canada and Mexico. The company primarily explores for gold and silver. Currently there are 2 analysts that rate Primero Mining a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Primero Mining has been 754,700 shares per day over the past 30 days. Primero has a market cap of $276.2 million and is part of the basic materials sector and metals & mining industry. Shares are down 25.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Primero Mining as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • PPP'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 49.56%, 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.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market, PRIMERO MINING CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • PRIMERO MINING CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, PRIMERO MINING CORP reported poor results of -$1.34 versus $0.00 in the prior year.
  • PPP's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.73 is somewhat weak and could be cause for future problems.
  • 47.16% is the gross profit margin for PRIMERO MINING CORP which we consider to be strong. It has increased from the same quarter the previous year.

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