Trade-Ideas LLC identified

Gold Fields

(

GFI

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Gold Fields as such a stock due to the following factors:

  • GFI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.3 million.
  • GFI has traded 479,089 shares today.
  • GFI is up 3.2% today.
  • GFI was down 5.2% yesterday.

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More details on GFI:

Gold Fields Limited operates as a gold mining company. The company engages in the exploration, extraction, processing, and smelting of gold and copper properties. It holds interests in eight operating mines in South Africa, Ghana, Australia, and Peru. The stock currently has a dividend yield of 0.6%. GFI has a PE ratio of 3. Currently there are 2 analysts that rate Gold Fields a buy, 2 analysts rate it a sell, and 1 rates it a hold.

TheStreet Recommends

The average volume for Gold Fields has been 6.5 million shares per day over the past 30 days. Gold Fields has a market cap of $2.2 billion and is part of the basic materials sector and metals & mining industry. Shares are down 44.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Gold Fields as a

sell

. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from the ratings report include:

  • Net operating cash flow has decreased to $191.30 million or 13.16% when compared to the same quarter last year. Despite a decrease in cash flow GOLD FIELDS LTD is still fairing well by exceeding its industry average cash flow growth rate of -54.64%.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, GOLD FIELDS LTD underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income has significantly decreased by 40.0% when compared to the same quarter one year ago, falling from $19.50 million to $11.70 million.
  • Despite currently having a low debt-to-equity ratio of 0.56, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
  • Despite the weak revenue results, GFI has significantly outperformed against the industry average of 46.5%. Since the same quarter one year prior, revenues fell by 11.6%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.

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