Anglogold Ashanti Limited (AU): Today's Featured Basic Materials Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Anglogold Ashanti ( AU) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 1.4%. By the end of trading, Anglogold Ashanti rose $0.19 (1.1%) to $18.14 on average volume. Throughout the day, 3,882,766 shares of Anglogold Ashanti exchanged hands as compared to its average daily volume of 2,911,300 shares. The stock ranged in a price between $17.80-$18.29 after having opened the day at $17.91 as compared to the previous trading day's close of $17.95. Other companies within the Basic Materials sector that increased today were: Houston American Energy Corporation ( HUSA), up 21.1%, Torch Energy Royalty ( TRU), up 20.0%, Kimber Resources ( KBX), up 17.8% and Constellation Energy Partners ( CEP), up 14.8%.
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AngloGold Ashanti Limited engages in the exploration, production, and marketing of gold. It also produces by-products, such as silver, uranium, and sulfuric acid. Anglogold Ashanti has a market cap of $6.5 billion and is part of the metals & mining industry. The company has a P/E ratio of 10.4, below the S&P 500 P/E ratio of 17.7. Shares are down 46.6% year to date as of the close of trading on Thursday. Currently there is 1 analyst that rates Anglogold Ashanti a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Anglogold Ashanti as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and deteriorating net income.

On the negative front, Mechel OAO ( MTL), down 15.2%, Polymet Mining ( PLM), down 11.8%, Quaterra Resources ( QMM), down 11.7% and Fortuna Silver Mines ( FSM), down 11.7% , were all laggards within the basic materials sector with Chevron ( CVX) being today's basic materials sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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