Silver Standard Resources (SSRI) Is Today's Dead Cat Bounce Stock

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 Silver Standard Resources ( SSRI) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Silver Standard Resources as such a stock due to the following factors:

  • SSRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.1 million.
  • SSRI has traded 58,536 shares today.
  • SSRI is up 5.7% today.
  • SSRI was down 7.3% yesterday.

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More details on SSRI:

Silver Standard Resources Inc. is engaged in the acquisition, exploration, development, and operation of silver and silver resource dominant mineral projects principally in the Americas. The company primarily explores for silver, zinc, gold, and lead deposits. Currently there are 3 analysts that rate Silver Standard Resources a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Silver Standard Resources has been 2.2 million shares per day over the past 30 days. Silver Standard has a market cap of $438.5 million and is part of the basic materials sector and metals & mining industry. Shares are down 15.7% 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.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Silver Standard Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Metals & Mining industry average. The net income has decreased by 2.5% when compared to the same quarter one year ago, dropping from -$14.31 million to -$14.67 million.
  • SILVER STANDARD RES INC 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, SILVER STANDARD RES INC swung to a loss, reporting -$2.79 versus $0.69 in the prior year.
  • SSRI has underperformed the S&P 500 Index, declining 19.37% 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.
  • SSRI's very impressive revenue growth greatly exceeded the industry average of 2.6%. Since the same quarter one year prior, revenues leaped by 80.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.

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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