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 up 0.5% versus the S&P 500, which was unchanged. Laggards within the Metals & Mining industry included Atlatsa Resources ( ATL), down 4.1%, Pacific Booker Minerals ( PBM), down 6.0%, Entree Gold ( EGI), down 7.6%, Mines Management ( MGN), down 2.1% and Ossen Innovation ( OSN), down 2.2%.

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 $0.01 (2.1%) to $0.60 on average volume. Throughout the day, 34,178 shares of Mines Management exchanged hands as compared to its average daily volume of 44,200 shares. The stock ranged in price between $0.58-$0.66 after having opened the day at $0.59 as compared to the previous trading day's close of $0.61.

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 $19.1 million and is part of the basic materials sector. Shares are up 6.6% year-to-date as of the close of trading on Monday.

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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, Entree Gold ( EGI) was down $0.02 (7.6%) to $0.21 on light volume. Throughout the day, 3,400 shares of Entree Gold exchanged hands as compared to its average daily volume of 61,000 shares. The stock ranged in price between $0.21-$0.23 after having opened the day at $0.22 as compared to the previous trading day's close of $0.23.

Entree Gold has a market cap of $34.0 million and is part of the basic materials sector. Shares are down 17.5% year-to-date as of the close of trading on Monday.

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Atlatsa Resources ( ATL) was another company that pushed the Metals & Mining industry lower today. Atlatsa Resources was down $0.01 (4.1%) to $0.19 on average volume. Throughout the day, 36,167 shares of Atlatsa Resources exchanged hands as compared to its average daily volume of 38,000 shares. The stock ranged in price between $0.18-$0.19 after having opened the day at $0.19 as compared to the previous trading day's close of $0.20.

Atlatsa Resources Corporation mines, explores for, and develops platinum group metals properties in South Africa. The company primarily explores for platinum, palladium, rhodium, gold, copper, and nickel. Atlatsa Resources has a market cap of $95.3 million and is part of the basic materials sector. Shares are down 70.1% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Atlatsa Resources a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates Atlatsa Resources as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

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Highlights from TheStreet Ratings analysis on ATL go as follows:

  • Compared to other companies in the Metals & Mining industry and the overall market, ATLATSA RESOURCES CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 20.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.49, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.83 is weak.
  • ATL'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 66.00%, 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.
  • The gross profit margin for ATLATSA RESOURCES CORP is currently extremely low, coming in at 4.14%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -11.90% is significantly below that of the industry average.

You can view the full analysis from the report here: Atlatsa Resources 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.

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