Why Great Panther Silver (GPL) Is Down Today

NEW YORK (TheStreet) -- Great Panther Silver (GPL) was falling 7.9% to $1.16 Monday on reports of disruptions at its Guanajuato Mine Complex in Mexico.

About 60 people entered the administration building and plant of Great Panther's mining complex, and continue to occupy the complex. The company reports that all employees are safe and are off-site, and there are no reports of violence. All services in the mine have been shut down until the company can regain control of the complex.

"First and foremost, we are thankful that our people are all off site and safe," president and CEO Robert Archer said in a press release. "It appears that a few members of the mining cooperative who sold the mine to Great Panther in 2005, when they were facing bankruptcy, are behind this illegal occupation of our facilities." Archer went on to say the company is cooperating with authorities, but is currently "reviewing all options to regain custody of our facility and ensure the security of our operations and our people."

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TheStreet Ratings team rates GREAT PANTHER SILVER LTD as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate GREAT PANTHER SILVER LTD (GPL) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. 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 and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • GREAT PANTHER SILVER LTD 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, GREAT PANTHER SILVER LTD reported lower earnings of $0.03 versus $0.08 in the prior year.
  • 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 186.5% when compared to the same quarter one year ago, falling from $1.76 million to -$1.52 million.
  • 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 on the basis of return on equity, GREAT PANTHER SILVER LTD underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Net operating cash flow has declined marginally to $5.66 million or 3.87% when compared to the same quarter last year. Despite a decrease in cash flow GREAT PANTHER SILVER LTD is still fairing well by exceeding its industry average cash flow growth rate of -50.21%.
  • 37.78% is the gross profit margin for GREAT PANTHER SILVER LTD which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, GPL's net profit margin of -10.62% significantly underperformed when compared to the industry average.
  • You can view the full analysis from the report here: GPL Ratings Report

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