3 Basic Materials Stocks Nudging The Sector Higher

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 112 points (0.7%) at 16,695 as of Monday, May 12, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,429 issues advancing vs. 632 declining with 133 unchanged.

The Basic Materials sector as a whole closed the day up 1.5% versus the S&P 500, which was up 1.0%. Top gainers within the Basic Materials sector included Sonde Resources ( SOQ), up 1.8%, Barnwell Industries ( BRN), up 4.6%, Sinocoking Coal and Coke Chemicals ( SCOK), up 4.0%, Flexible Solutions International ( FSI), up 5.1% and Minco Gold ( MGH), up 6.9%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today:

Flexible Solutions International ( FSI) is one of the companies that pushed the Basic Materials sector higher today. Flexible Solutions International was up $0.03 (5.1%) to $0.62 on light volume. Throughout the day, 14,916 shares of Flexible Solutions International exchanged hands as compared to its average daily volume of 45,300 shares. The stock ranged in a price between $0.60-$0.62 after having opened the day at $0.60 as compared to the previous trading day's close of $0.59.

Flexible Solutions International has a market cap of $8.2 million and is part of the energy industry. Shares are down 35.4% year-to-date as of the close of trading on Friday.

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

Highlights from TheStreet Ratings analysis on FSI go as follows:

You can view the full analysis from the report here: Flexible Solutions International Ratings Report

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

At the close, Sinocoking Coal and Coke Chemicals ( SCOK) was up $0.04 (4.0%) to $1.04 on heavy volume. Throughout the day, 52,132 shares of Sinocoking Coal and Coke Chemicals exchanged hands as compared to its average daily volume of 23,000 shares. The stock ranged in a price between $0.83-$1.07 after having opened the day at $1.00 as compared to the previous trading day's close of $1.00.

SinoCoking Coal and Coke Chemical Industries, Inc. operates as a coal and coke producer in the People's Republic of China. Its products include raw coal, washed coal, medium or mid-coal, coal slurries, coke, coal tar, and crude benzol. It provides metallurgical coke for steel manufacturing. Sinocoking Coal and Coke Chemicals has a market cap of $21.9 million and is part of the energy industry. Shares are down 13.8% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Sinocoking Coal and Coke Chemicals a buy, no analysts rate it a sell, and none rate it a hold.

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

TheStreet Ratings rates Sinocoking Coal and Coke Chemicals as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from TheStreet Ratings analysis on SCOK go as follows:

  • The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SCOK has a quick ratio of 2.19, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The revenue fell significantly faster than the industry average of 3.1%. Since the same quarter one year prior, revenues fell by 37.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for SINOCOKING COAL & COKE CHEM is rather low; currently it is at 17.94%. Regardless of SCOK's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -0.81% trails the industry average.
  • SINOCOKING COAL & COKE CHEM 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, SINOCOKING COAL & COKE CHEM reported lower earnings of $0.05 versus $0.59 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 112.9% when compared to the same quarter one year ago, falling from $0.83 million to -$0.11 million.

You can view the full analysis from the report here: Sinocoking Coal and Coke Chemicals Ratings Report

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

Sonde Resources ( SOQ) was another company that pushed the Basic Materials sector higher today. Sonde Resources was up $0.01 (1.8%) to $0.39 on heavy volume. Throughout the day, 87,978 shares of Sonde Resources exchanged hands as compared to its average daily volume of 38,500 shares. The stock ranged in a price between $0.36-$0.43 after having opened the day at $0.36 as compared to the previous trading day's close of $0.39.

Sonde Resources has a market cap of $23.5 million and is part of the energy industry. Shares are down 39.3% year-to-date as of the close of trading on Friday.

Highlights from TheStreet Ratings analysis on SOQ go as follows:

You can view the full analysis from the report here: Sonde Resources Ratings Report

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

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.

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