Silver Standard Resources (SSRI) Stock Falls as Silver Prices Decline

NEW YORK (TheStreet) -- Shares of Silver Standard Resources  (SSRI) fell 7.18% to $4.91 in early afternoon trading as silver prices declined.

Silver fell 1.04% to $16.88 an ounce at 12:01 p.m., according to CNBC.

The company announced Friday that it had expanded mineral resources at its Marigold mine in Humboldt County, NV with higher gold grade mineralization.

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"Exploration efforts at Marigold continue to deliver positive results," said Silver Standard CEO and President John Smith. "Our goal was to confirm our understanding of the geology and to identify extensions to existing pits for higher margin ounces. The results of our 2014 drill program have exceeded our expectations due to the gold grade encountered and the proximity to the historical 8 South pit."

Separately, TheStreet Ratings team rates SILVER STANDARD RES INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate SILVER STANDARD RES INC (SSRI) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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.
  • The gross profit margin for SILVER STANDARD RES INC is rather low; currently it is at 19.47%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -18.50% is significantly below that of the industry average.
  • 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 13.25% 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.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, SILVER STANDARD RES INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • You can view the full analysis from the report here: SSRI Ratings Report

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