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.

The Metals & Mining industry as a whole closed the day down 2.7% versus the S&P 500, which was up 0.4%. Laggards within the Metals & Mining industry included Alderon Iron Ore ( AXX), down 1.8%, Minco Gold ( MGH), down 7.6%, Entree Gold ( EGI), down 11.2%, Mines Management ( MGN), down 2.0% and India Globalization Capital ( IGC), down 6.2%.

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 (2.0%) to $0.48 on average volume. Throughout the day, 23,893 shares of Mines Management exchanged hands as compared to its average daily volume of 30,800 shares. The stock ranged in price between $0.47-$0.49 after having opened the day at $0.49 as compared to the previous trading day's close of $0.49.

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 $14.6 million and is part of the basic materials sector. Shares are up 4.2% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Mines Management as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

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.
  • Net operating cash flow has declined marginally to -$1.52 million or 3.12% when compared to the same quarter last year. Despite a decrease in cash flow of 3.12%, MINES MANAGEMENT INC is still significantly exceeding the industry average of -57.49%.
  • MGN'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 69.38%, 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 revenue fell significantly faster than the industry average of 2.8%. Since the same quarter one year prior, revenues fell by 44.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • MINES MANAGEMENT INC has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, MINES MANAGEMENT INC continued to lose money by earning -$0.25 versus -$0.28 in the prior year.

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 (11.2%) to $0.15 on light volume. Throughout the day, 52,550 shares of Entree Gold exchanged hands as compared to its average daily volume of 79,500 shares. The stock ranged in price between $0.15-$0.17 after having opened the day at $0.17 as compared to the previous trading day's close of $0.17.

Entree Gold has a market cap of $24.9 million and is part of the basic materials sector. Shares are down 1.5% year-to-date as of the close of trading on Friday.

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Alderon Iron Ore ( AXX) was another company that pushed the Metals & Mining industry lower today. Alderon Iron Ore was down $0.00 (1.8%) to $0.23 on light volume. Throughout the day, 17,711 shares of Alderon Iron Ore exchanged hands as compared to its average daily volume of 35,500 shares. The stock ranged in price between $0.22-$0.23 after having opened the day at $0.23 as compared to the previous trading day's close of $0.23.

Alderon Iron Ore has a market cap of $29.9 million and is part of the basic materials sector. Shares are down 32.0% 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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