3 Stocks Pushing The Metals & Mining Industry Lower

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.

The Metals & Mining industry as a whole closed the day down 0.1% versus the S&P 500, which was up 0.3%. Laggards within the Metals & Mining industry included Sinocoking Coal and Coke Chemicals ( SCOK), down 3.1%, Ossen Innovation ( OSN), down 5.0%, China Gengsheng Minerals ( CHGS), down 3.0%, Eurasian Minerals ( EMXX), down 2.4% and Oxford Resource Partners ( OXF), down 4.0%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

China Gengsheng Minerals ( CHGS) is one of the companies that pushed the Metals & Mining industry lower today. China Gengsheng Minerals was down $0.01 (3.0%) to $0.18 on light volume. Throughout the day, 54,841 shares of China Gengsheng Minerals exchanged hands as compared to its average daily volume of 221,000 shares. The stock ranged in price between $0.16-$0.19 after having opened the day at $0.19 as compared to the previous trading day's close of $0.19.

China GengSheng Minerals, Inc., through its subsidiaries, operates in the materials technology industry. It develops, manufactures, and sells a range of mineral-based, heat-resistant products. China Gengsheng Minerals has a market cap of $5.8 million and is part of the basic materials sector. Shares are up 4.6% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates China Gengsheng Minerals as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, unimpressive growth in net income, generally high debt management risk, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on CHGS go as follows:

  • CHINA GENGSHENG MINERALS INC's earnings per share declined by 37.5% in the most recent quarter compared to 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, CHINA GENGSHENG MINERALS INC reported poor results of -$0.51 versus -$0.28 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 Chemicals industry. The net income has significantly decreased by 39.7% when compared to the same quarter one year ago, falling from -$2.20 million to -$3.07 million.
  • The debt-to-equity ratio is very high at 2.59 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, CHGS maintains a poor quick ratio of 0.76, which illustrates the inability to avoid short-term cash problems.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Chemicals industry and the overall market, CHINA GENGSHENG MINERALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $7.67 million or 44.38% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: China Gengsheng Minerals Ratings Report

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At the close, Ossen Innovation ( OSN) was down $0.05 (5.0%) to $0.95 on light volume. Throughout the day, 5,471 shares of Ossen Innovation exchanged hands as compared to its average daily volume of 28,000 shares. The stock ranged in price between $0.95-$1.00 after having opened the day at $0.96 as compared to the previous trading day's close of $1.00.

Ossen Innovation Co., Ltd. engages in the manufacture and sale of plain surface prestressed steel materials, and rare earth coated and zinc coated prestressed steel materials in the People's Republic of China. Ossen Innovation has a market cap of $19.1 million and is part of the basic materials sector. Shares are down 16.0% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Ossen Innovation as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on OSN go as follows:

  • Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 27.16% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, OSSEN INNOVATION CO LTD -ADR has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Metals & Mining industry average, but is greater than that of the S&P 500. The net income increased by 126.3% when compared to the same quarter one year prior, rising from $0.74 million to $1.68 million.
  • The gross profit margin for OSSEN INNOVATION CO LTD -ADR is currently extremely low, coming in at 12.87%. Regardless of OSN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, OSN's net profit margin of 5.06% is significantly lower than the industry average.

You can view the full analysis from the report here: Ossen Innovation Ratings Report

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Sinocoking Coal and Coke Chemicals ( SCOK) was another company that pushed the Metals & Mining industry lower today. Sinocoking Coal and Coke Chemicals was down $0.03 (3.1%) to $1.00 on light volume. Throughout the day, 2,274 shares of Sinocoking Coal and Coke Chemicals exchanged hands as compared to its average daily volume of 21,400 shares. The stock ranged in price between $1.00-$1.05 after having opened the day at $1.01 as compared to the previous trading day's close of $1.03.

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 $21.5 million and is part of the basic materials sector. Shares are down 11.0% year-to-date as of the close of trading on Thursday.

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.

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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.

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