Strong On High Volume: Harmony Gold Mining (HMY)

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 Harmony Gold Mining ( HMY) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Harmony Gold Mining as such a stock due to the following factors:

  • HMY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.2 million.
  • HMY has traded 687,995 shares today.
  • HMY is trading at 3.61 times the normal volume for the stock at this time of day.
  • HMY is trading at a new high 4.12% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in HMY with the Ticky from Trade-Ideas. See the FREE profile for HMY NOW at Trade-Ideas

More details on HMY:

Harmony Gold Mining Company Limited is engaged in the exploration and mining of gold in South Africa and Papua New Guinea. The company also explores for silver, copper, and molybdenum. Currently there are no analysts that rate Harmony Gold Mining a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Harmony Gold Mining has been 3.0 million shares per day over the past 30 days. Harmony has a market cap of $780.1 million and is part of the basic materials sector and metals & mining industry. Shares are down 31.2% year-to-date as of the close of trading on Thursday.

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 Harmony Gold Mining as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and poor profit margins.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 1918.2% when compared to the same quarter one year ago, falling from $1.29 million to -$23.53 million.
  • The gross profit margin for HARMONY GOLD MINING CO LTD is rather low; currently it is at 18.28%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.00% is significantly below that of the industry average.
  • This stock's share value has moved by only 31.50% over the past year. 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.
  • HARMONY GOLD MINING CO LTD's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. 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, HARMONY GOLD MINING CO LTD continued to lose money by earning -$0.28 versus -$0.62 in the prior year.
  • HMY, with its decline in revenue, slightly underperformed the industry average of 3.5%. Since the same quarter one year prior, revenues slightly dropped by 2.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing 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.

null

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists