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 ( 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 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 $24.9 million.
- BVN has traded 1.5 million shares today.
- BVN traded in a range 234.1% of the normal price range with a price range of $0.76.
- BVN traded above its daily resistance level (quality: 47 days, meaning that the stock is crossing a resistance level set by the last 47 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: Compania de Minas Buenaventura S.A.A., a precious metals company, is engaged in the exploration, mining, and processing of gold and silver. It also explores for other metals, including lead, zinc, and copper. The stock currently has a dividend yield of 0.2%. Currently there is 1 analyst that rates Buenaventura Mining a buy, 1 analyst rates it a sell, and 2 rate it a hold. The average volume for Buenaventura Mining has been 1.8 million shares per day over the past 30 days. Buenaventura has a market cap of $2.7 billion and is part of the basic materials sector and metals & mining industry. Shares are down 4.8% 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 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 deteriorating net income, disappointing return on equity and poor profit margins. Highlights from the ratings report include:
- BVN's debt-to-equity ratio is very low at 0.09 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 1.07, which illustrates the ability to avoid short-term cash problems.
- BVN, with its decline in revenue, underperformed when compared the industry average of 4.5%. Since the same quarter one year prior, revenues fell by 20.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- MINAS BUENAVENTURA SA 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. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, MINAS BUENAVENTURA SA swung to a loss, reporting -$0.40 versus $2.77 in the prior year. This year, the market expects an improvement in earnings ($0.79 versus -$0.40).
- The gross profit margin for MINAS BUENAVENTURA SA is currently lower than what is desirable, coming in at 30.33%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -5.71% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to $25.89 million or 63.09% 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.
- You can view the full Buenaventura Mining 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.