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 0.2%. Laggards within the Metals & Mining industry included Pacific Booker Minerals ( PBM), down 2.5%, Entree Gold ( EGI), down 5.5%, Alderon Iron Ore ( AXX), down 3.5%, Mines Management ( MGN), down 6.4% and China Gerui Advanced Materials Group ( CHOP), down 3.2%.

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

Mines Management ( MGN) is one of the companies that pushed the Metals & Mining industry lower today. Mines Management was down $0.04 (6.4%) to $0.60 on light volume. Throughout the day, 17,746 shares of Mines Management exchanged hands as compared to its average daily volume of 42,200 shares. The stock ranged in price between $0.60-$0.63 after having opened the day at $0.63 as compared to the previous trading day's close of $0.64.

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 $17.6 million and is part of the basic materials sector. Shares are down 1.7% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Mines Management as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

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.
  • MINES MANAGEMENT INC reported flat earnings per share in the most recent quarter. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, MINES MANAGEMENT INC continued to lose money by earning -$0.25 versus -$0.28 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income increased by 0.8% when compared to the same quarter one year prior, going from -$1.84 million to -$1.82 million.
  • Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • MGN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.69, which clearly demonstrates the ability to cover short-term cash needs.

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

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At the close, Alderon Iron Ore ( AXX) was down $0.01 (3.5%) to $0.34 on average volume. Throughout the day, 39,756 shares of Alderon Iron Ore exchanged hands as compared to its average daily volume of 43,500 shares. The stock ranged in price between $0.33-$0.36 after having opened the day at $0.36 as compared to the previous trading day's close of $0.36.

Alderon Iron Ore has a market cap of $46.5 million and is part of the basic materials sector. Shares are down 77.3% year-to-date as of the close of trading on Friday. Currently there are 3 analysts who rate Alderon Iron Ore a buy, no analysts rate it a sell, and none rate it a hold.

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 Metals & Mining industry lower today. Entree Gold was down $0.01 (5.5%) to $0.22 on average volume. Throughout the day, 69,500 shares of Entree Gold exchanged hands as compared to its average daily volume of 60,200 shares. The stock ranged in price between $0.21-$0.24 after having opened the day at $0.24 as compared to the previous trading day's close of $0.23.

Entree Gold has a market cap of $34.2 million and is part of the basic materials sector. Shares are down 16.9% 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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