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.

Trade-Ideas LLC identified Buenaventura Mining ( BVN) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Buenaventura Mining as such a stock due to the following factors:

  • BVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.9 million.
  • BVN has traded 264,981 shares today.
  • BVN is trading at 3.35 times the normal volume for the stock at this time of day.
  • BVN is trading at a new low 3.02% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on BVN:

Compania de Minas Buenaventura S.A.A., a precious metals company, is engaged in the exploration, mining, and processing of gold and silver. It also explores for other metals, including lead, zinc, and copper. The stock currently has a dividend yield of 0.1%. Currently there are 2 analysts that rate Buenaventura Mining a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Buenaventura Mining has been 1.5 million shares per day over the past 30 days. Buenaventura has a market cap of $2.9 billion and is part of the basic materials sector and metals & mining industry. Shares are down 2.6% 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.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Buenaventura Mining as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • 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 on the basis of return on equity, MINAS BUENAVENTURA SA underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Net operating cash flow has significantly decreased to $41.76 million or 50.75% 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.
  • In its most recent trading session, BVN has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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 21.8% when compared to the same quarter one year prior, going from $18.95 million to $23.09 million.
  • MINAS BUENAVENTURA SA has improved earnings per share by 28.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MINAS BUENAVENTURA SA swung to a loss, reporting -$0.40 versus $2.77 in the prior year. This year, the market expects an improvement in earnings ($0.54 versus -$0.40).

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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