3 Stocks Pushing The Basic Materials Sector Lower

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The Basic Materials sector as a whole closed the day down 0.6% versus the S&P 500, which was down 0.6%. Laggards within the Basic Materials sector included Sonde Resources ( SOQ), down 7.2%, Atlatsa Resources ( ATL), down 2.7%, Timberline Resources ( TLR), down 3.9%, Ossen Innovation ( OSN), down 6.1% and Oxford Resource Partners ( OXF), down 2.9%.

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

Timberline Resources ( TLR) is one of the companies that pushed the Basic Materials sector lower today. Timberline Resources was down $0.00 (3.9%) to $0.12 on light volume. Throughout the day, 51,681 shares of Timberline Resources exchanged hands as compared to its average daily volume of 121,900 shares. The stock ranged in price between $0.12-$0.13 after having opened the day at $0.13 as compared to the previous trading day's close of $0.13.

Timberline Resources has a market cap of $9.4 million and is part of the energy industry. Shares are down 27.2% 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.

At the close, Atlatsa Resources ( ATL) was down $0.01 (2.7%) to $0.32 on light volume. Throughout the day, 32,800 shares of Atlatsa Resources exchanged hands as compared to its average daily volume of 46,600 shares. The stock ranged in price between $0.32-$0.34 after having opened the day at $0.32 as compared to the previous trading day's close of $0.33.

Atlatsa Resources Corporation mines, explores for, and develops platinum group metals properties in South Africa. The company primarily explores for platinum, palladium, rhodium, gold, copper, and nickel. Atlatsa Resources has a market cap of $202.3 million and is part of the energy industry. Shares are down 42.6% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Atlatsa Resources a buy, 1 analyst rates it a sell, and none rate it a hold.

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TheStreet Ratings rates Atlatsa Resources as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on ATL go as follows:

  • Compared to other companies in the Metals & Mining industry and the overall market, ATLATSA RESOURCES CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The revenue growth came in higher than the industry average of 0.2%. Since the same quarter one year prior, revenues rose by 19.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • Net operating cash flow has declined marginally to -$27.73 million or 1.47% when compared to the same quarter last year. Despite a decrease in cash flow ATLATSA RESOURCES CORP is still fairing well by exceeding its industry average cash flow growth rate of -23.29%.
  • The gross profit margin for ATLATSA RESOURCES CORP is currently extremely low, coming in at 5.52%. Regardless of ATL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ATL's net profit margin of -9.05% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Atlatsa 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.

Sonde Resources ( SOQ) was another company that pushed the Basic Materials sector lower today. Sonde Resources was down $0.02 (7.2%) to $0.26 on heavy volume. Throughout the day, 55,923 shares of Sonde Resources exchanged hands as compared to its average daily volume of 34,500 shares. The stock ranged in price between $0.25-$0.30 after having opened the day at $0.26 as compared to the previous trading day's close of $0.28.

Sonde Resources has a market cap of $16.3 million and is part of the energy industry. Shares are down 59.4% 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.

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.

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3 Stocks Pushing The Basic Materials Sector Lower

3 Stocks Pushing The Basic Materials Sector Lower