3 Stocks Pushing The Basic Materials Sector Lower

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The Basic Materials sector as a whole closed the day down 0.4% versus the S&P 500, which was up 0.4%. Laggards within the Basic Materials sector included Sonde Resources ( SOQ), down 7.6%, Atlatsa Resources ( ATL), down 5.3%, Ossen Innovation ( OSN), down 2.2%, Eurasian Minerals ( EMXX), down 3.2% and Lucas Energy ( LEI), down 3.9%.

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

Ossen Innovation ( OSN) is one of the companies that pushed the Basic Materials sector lower today. Ossen Innovation was down $0.02 (2.2%) to $0.90 on light volume. Throughout the day, 12,700 shares of Ossen Innovation exchanged hands as compared to its average daily volume of 24,600 shares. The stock ranged in price between $0.90-$0.94 after having opened the day at $0.93 as compared to the previous trading day's close of $0.92.

Ossen Innovation Co., Ltd. manufactures and sells various 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 $18.1 million and is part of the energy industry. Shares are down 22.7% year-to-date as of the close of trading on Wednesday.

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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 revenue growth, solid stock price performance and compelling growth in net income. 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 OSN go as follows:

  • OSN's very impressive revenue growth greatly exceeded the industry average of 1.1%. Since the same quarter one year prior, revenues leaped by 92.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • This stock has managed to rise its share value by 95.82% over the past twelve months. 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 gross profit margin for OSSEN INNOVATION CO LTD -ADR is currently extremely low, coming in at 10.81%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.71% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to -$1.13 million or 112.47% 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: Ossen Innovation Ratings Report

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