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.

Trade-Ideas LLC identified First Majestic Silver ( AG) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified First Majestic Silver as such a stock due to the following factors:

  • AG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.9 million.
  • AG has traded 388,724 shares today.
  • AG is trading at 4.77 times the normal volume for the stock at this time of day.
  • AG is trading at a new high 9.06% 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 AG with the Ticky from Trade-Ideas. See the FREE profile for AG NOW at Trade-Ideas

More details on AG:

First Majestic Silver Corp. acquires, develops, and explores mineral properties with a focus on silver projects in Mexico. Currently there are 2 analysts that rate First Majestic Silver a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for First Majestic Silver has been 2.3 million shares per day over the past 30 days. First Majestic has a market cap of $655.8 million and is part of the basic materials sector and metals & mining industry. Shares are up 12.2% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates First Majestic Silver as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Metals & Mining industry and the overall market, FIRST MAJESTIC SILVER CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • AG'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 48.39%, 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.
  • FIRST MAJESTIC SILVER CORP has improved earnings per share by 21.4% in the most recent quarter compared to the same quarter a year ago. 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, FIRST MAJESTIC SILVER CORP reported poor results of -$0.53 versus -$0.33 in the prior year.
  • AG's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.72 is somewhat weak and could be cause for future problems.
  • Net operating cash flow has significantly increased by 61.66% to $41.61 million when compared to the same quarter last year. In addition, FIRST MAJESTIC SILVER CORP has also vastly surpassed the industry average cash flow growth rate of -45.34%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

null