Trade-Ideas LLC identified

Yamana Gold

(

AUY

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

  • AUY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $62.1 million.
  • AUY has traded 3.2 million shares today.
  • AUY is up 3.1% today.
  • AUY was down 5% yesterday.

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More details on AUY:

Yamana Gold Inc. engages in the exploration and development of precious metal properties in Brazil, Argentina, Chile, Mexico, and Canada. It explores for gold, silver, and copper. The stock currently has a dividend yield of 0.5%. Currently there are 5 analysts that rate Yamana Gold a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Yamana Gold has been 15.4 million shares per day over the past 30 days. Yamana has a market cap of $4.0 billion and is part of the basic materials sector and metals & mining industry. Shares are up 124.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Yamana Gold as a

sell

. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

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, YAMANA GOLD INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • YAMANA GOLD INC 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, YAMANA GOLD INC reported poor results of -$2.23 versus -$1.36 in the prior year.
  • Despite the weak revenue results, AUY has significantly outperformed against the industry average of 44.9%. Since the same quarter one year prior, revenues slightly dropped by 6.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.30 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • 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 123.9% when compared to the same quarter one year prior, rising from -$151.80 million to $36.30 million.

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