Watch Out: Barbarians At The Gate For Buenaventura Mining Company (BVN)

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 Buenaventura Mining Company ( BVN) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Buenaventura Mining Company as such a stock due to the following factors:

  • BVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.4 million.
  • BVN has traded 257,169 shares today.
  • BVN traded in a range 223.9% of the normal price range with a price range of $0.96.
  • BVN traded above its daily resistance level (quality: 3 days, meaning that the stock is crossing a resistance level set by the last 3 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in BVN with the Ticky from Trade-Ideas. See the FREE profile for BVN NOW at Trade-Ideas

More details on BVN:

Compa ia de Minas Buenaventura S.A.A., a precious metals company, engages in the exploration, mining, and processing of gold and silver in Peru. It also explores for other metals, including zinc, lead, and copper. The stock currently has a dividend yield of 2.3%. BVN has a PE ratio of 4.8. Currently there is 1 analyst that rates Buenaventura Mining Company a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Buenaventura Mining Company has been 2.2 million shares per day over the past 30 days. Buenaventura has a market cap of $3.3 billion and is part of the basic materials sector and metals & mining industry. Shares are up 15.8% year-to-date as of the close of trading on Wednesday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Buenaventura Mining Company as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • BVN's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.19, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for MINAS BUENAVENTURA SA is rather high; currently it is at 51.04%. Regardless of BVN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BVN's net profit margin of 18.82% compares favorably to the industry average.
  • 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 65.4% when compared to the same quarter one year ago, falling from $188.22 million to $65.11 million.
  • Net operating cash flow has decreased to $67.58 million or 42.67% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, MINAS BUENAVENTURA SA has marginally lower results.

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

null

More from Markets

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home