Coeur Mining (CDE) Is Today's Dead Cat Bounce Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Coeur Mining ( CDE) as a "dead cat bounce" (down big yesterday but up 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 $18.0 million.
  • CDE has traded 199,434 shares today.
  • CDE is up 3.2% today.
  • CDE was down 5% 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 South America, Mexico, the United States, and Australia. Currently there are 3 analysts that rate Coeur Mining a buy, 3 analysts rate it a sell, and 3 rate it a hold.

The average volume for Coeur Mining has been 1.6 million shares per day over the past 30 days. Coeur has a market cap of $1.1 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.30 and a short float of 4.4% with 2.38 days to cover. Shares are down 3.8% year-to-date as of the close of trading on Wednesday.

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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 feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • COEUR MINING INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, COEUR MINING INC reported lower earnings of $0.54 versus $1.05 in the prior year. For the next year, the market is expecting a contraction of 233.3% in earnings (-$0.72 versus $0.54).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 192.4% when compared to the same quarter one year ago, falling from -$15.82 million to -$46.27 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, COEUR MINING INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for COEUR MINING INC is currently lower than what is desirable, coming in at 34.41%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -23.03% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $26.80 million or 66.38% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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