3 Stocks Moving The Basic Materials Sector Upward

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 44 points (0.3%) at 17,031 as of Monday, Sept. 15, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,035 issues advancing vs. 2,035 declining with 141 unchanged.

The Basic Materials sector as a whole closed the day down 0.4% versus the S&P 500, which was down 0.1%. Top gainers within the Basic Materials sector included Entree Gold ( EGI), up 10.1%, United States Antimony ( UAMY), up 1.7%, Tengasco ( TGC), up 7.9%, Mines Management ( MGN), up 2.2% and Alderon Iron Ore ( AXX), up 4.6%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today:

Mines Management ( MGN) is one of the companies that pushed the Basic Materials sector higher today. Mines Management was up $0.02 (2.2%) to $0.68 on light volume. Throughout the day, 21,899 shares of Mines Management exchanged hands as compared to its average daily volume of 57,800 shares. The stock ranged in a price between $0.67-$0.74 after having opened the day at $0.67 as compared to the previous trading day's close of $0.67.

Mines Management, Inc., together with its subsidiaries, acquires, explores, and develops various mineral properties in North and South America. The company explores for silver, and associated base and precious metals. Mines Management has a market cap of $19.4 million and is part of the metals & mining industry. Shares are up 11.7% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Mines Management a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Mines Management as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on MGN go as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, MINES MANAGEMENT INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • MGN has underperformed the S&P 500 Index, declining 11.02% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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 28.1% when compared to the same quarter one year prior, rising from -$2.15 million to -$1.54 million.
  • MGN, with its decline in revenue, underperformed when compared the industry average of 0.6%. Since the same quarter one year prior, revenues fell by 12.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • MINES MANAGEMENT INC has improved earnings per share by 28.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, MINES MANAGEMENT INC continued to lose money by earning -$0.25 versus -$0.28 in the prior year.

You can view the full analysis from the report here: Mines Management Ratings Report

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At the close, United States Antimony ( UAMY) was up $0.02 (1.7%) to $1.20 on heavy volume. Throughout the day, 105,013 shares of United States Antimony exchanged hands as compared to its average daily volume of 32,100 shares. The stock ranged in a price between $1.09-$1.23 after having opened the day at $1.23 as compared to the previous trading day's close of $1.18.

United States Antimony Corporation produces and sells antimony, silver, gold, and zeolite products in the United States. United States Antimony has a market cap of $74.2 million and is part of the metals & mining industry. Shares are down 40.1% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate United States Antimony a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates United States Antimony as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on UAMY go as follows:

  • The gross profit margin for U S ANTIMONY CORP is currently extremely low, coming in at 1.89%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -18.67% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $0.13 million or 44.49% 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.
  • U S ANTIMONY CORP reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, U S ANTIMONY CORP reported poor results of -$0.03 versus -$0.01 in the prior year.
  • 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 18.1% when compared to the same quarter one year prior, going from -$0.52 million to -$0.42 million.
  • 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, U S ANTIMONY CORP's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: United States Antimony 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.

Entree Gold ( EGI) was another company that pushed the Basic Materials sector higher today. Entree Gold was up $0.03 (10.1%) to $0.29 on heavy volume. Throughout the day, 581,027 shares of Entree Gold exchanged hands as compared to its average daily volume of 70,800 shares. The stock ranged in a price between $0.26-$0.29 after having opened the day at $0.26 as compared to the previous trading day's close of $0.26.

Entree Gold has a market cap of $38.2 million and is part of the metals & mining industry. Shares are down 6.0% year-to-date as of the close of trading on Friday.

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.

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