3 Stocks Pushing The Basic Materials Sector Lower

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The Basic Materials sector as a whole closed the day down 1.1% versus the S&P 500, which was down 0.3%. Laggards within the Basic Materials sector included Sonde Resources ( SOQ), down 4.9%, CKX Lands ( CKX), down 2.3%, Atlatsa Resources ( ATL), down 1.9%, Entree Gold ( EGI), down 4.7% and Ossen Innovation ( OSN), down 4.4%.

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

Entree Gold ( EGI) is one of the companies that pushed the Basic Materials sector lower today. Entree Gold was down $0.01 (4.7%) to $0.27 on heavy volume. Throughout the day, 140,343 shares of Entree Gold exchanged hands as compared to its average daily volume of 69,100 shares. The stock ranged in price between $0.25-$0.27 after having opened the day at $0.26 as compared to the previous trading day's close of $0.28.

Entree Gold has a market cap of $39.7 million and is part of the energy industry. Shares are down 0.4% year-to-date as of the close of trading on Friday.

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At the close, Atlatsa Resources ( ATL) was down $0.01 (1.9%) to $0.34 on light volume. Throughout the day, 11,002 shares of Atlatsa Resources exchanged hands as compared to its average daily volume of 47,500 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 $0.34.

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 $185.7 million and is part of the energy industry. Shares are down 41.7% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Atlatsa Resources a buy, no analysts rate 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 impressive record of earnings per share growth. 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 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 0.6%. Since the same quarter one year prior, revenues rose by 20.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 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 24.9% when compared to the same quarter one year prior, going from -$9.29 million to -$6.97 million.
  • The gross profit margin for ATLATSA RESOURCES CORP is currently extremely low, coming in at 4.14%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -11.90% is significantly below that of the industry average.

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

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Sonde Resources ( SOQ) was another company that pushed the Basic Materials sector lower today. Sonde Resources was down $0.01 (4.9%) to $0.18 on light volume. Throughout the day, 27,858 shares of Sonde Resources exchanged hands as compared to its average daily volume of 38,700 shares. The stock ranged in price between $0.16-$0.19 after having opened the day at $0.18 as compared to the previous trading day's close of $0.19.

Sonde Resources has a market cap of $9.0 million and is part of the energy industry. Shares are down 76.8% 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.

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