Alamos Gold (AGI) Showing Signs Of A Dead Cat Bounce Today

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

  • AGI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.5 million.
  • AGI has traded 98,074 shares today.
  • AGI is up 3.3% today.
  • AGI was down 6.4% yesterday.

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More details on AGI:

Alamos Gold Inc. is engaged in the acquisition, exploration, development, and extraction of precious metals, primarily gold. It owns and operates the Mulatos mine and holds the mineral rights to the Salamandra group of concessions in the State of Sonora, Mexico. The stock currently has a dividend yield of 2.9%. Currently there are 5 analysts that rate Alamos Gold a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Alamos Gold has been 946,700 shares per day over the past 30 days. Alamos has a market cap of $877.5 million and is part of the basic materials sector and metals & mining industry. Shares are down 40.6% 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.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Alamos Gold as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • ALAMOS GOLD INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago.
  • 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 124.2% when compared to the same quarter one year ago, falling from $9.25 million to -$2.24 million.
  • Net operating cash flow has significantly decreased to -$0.03 million or 100.10% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 42.40%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 128.57% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • 38.94% is the gross profit margin for ALAMOS GOLD INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, AGI's net profit margin of -5.80% significantly underperformed when compared to the industry average.

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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