3 Stocks Pushing The Metals & Mining Industry Lower

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.

The Metals & Mining industry as a whole closed the day down 0.7% versus the S&P 500, which was up 0.1%. Laggards within the Metals & Mining industry included Timberline Resources ( TLR), down 5.9%, Ossen Innovation ( OSN), down 2.5%, Eurasian Minerals ( EMXX), down 2.6%, Oxford Resource Partners ( OXF), down 3.7% and Mines Management ( MGN), down 4.2%.

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

Oxford Resource Partners ( OXF) is one of the companies that pushed the Metals & Mining industry lower today. Oxford Resource Partners was down $0.03 (3.7%) to $0.85 on heavy volume. Throughout the day, 53,455 shares of Oxford Resource Partners exchanged hands as compared to its average daily volume of 32,800 shares. The stock ranged in price between $0.85-$0.93 after having opened the day at $0.85 as compared to the previous trading day's close of $0.88.

Oxford Resource Partners, LP produces and markets thermal coal in the United States. The company markets its thermal coal to utilities, industrial customers, municipalities, and other coal-related entities. Oxford Resource Partners has a market cap of $9.3 million and is part of the basic materials sector. Shares are down 28.2% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Oxford Resource Partners a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Oxford Resource Partners as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on OXF go as follows:

  • Net operating cash flow has declined marginally to $4.78 million or 8.44% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, OXFORD RESOURCE PARTNERS LP has marginally lower results.
  • The gross profit margin for OXFORD RESOURCE PARTNERS LP is rather low; currently it is at 18.17%. Regardless of OXF's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, OXF's net profit margin of -3.53% significantly underperformed when compared to the industry average.
  • OXF's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 56.72%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • OXFORD RESOURCE PARTNERS LP has improved earnings per share by 47.6% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, OXFORD RESOURCE PARTNERS LP continued to lose money by earning -$1.07 versus -$1.27 in the prior year. For the next year, the market is expecting a contraction of 7.0% in earnings (-$1.15 versus -$1.07).
  • OXF, with its decline in revenue, slightly underperformed the industry average of 3.0%. Since the same quarter one year prior, revenues slightly dropped by 5.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here: Oxford Resource Partners Ratings Report

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At the close, Ossen Innovation ( OSN) was down $0.02 (2.5%) to $0.89 on light volume. Throughout the day, 14,007 shares of Ossen Innovation exchanged hands as compared to its average daily volume of 20,600 shares. The stock ranged in price between $0.85-$0.89 after having opened the day at $0.85 as compared to the previous trading day's close of $0.91.

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 $17.7 million and is part of the basic materials sector. Shares are down 23.5% year-to-date as of the close of trading on Tuesday.

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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 0.6%. 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 25.35% 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

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Timberline Resources ( TLR) was another company that pushed the Metals & Mining industry lower today. Timberline Resources was down $0.00 (5.9%) to $0.07 on average volume. Throughout the day, 219,210 shares of Timberline Resources exchanged hands as compared to its average daily volume of 181,300 shares. The stock ranged in price between $0.07-$0.08 after having opened the day at $0.07 as compared to the previous trading day's close of $0.07.

Timberline Resources has a market cap of $5.3 million and is part of the basic materials sector. Shares are down 57.5% year-to-date as of the close of trading on Tuesday.

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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