Strong On High Relative Volume: Silver Standard Resources (SSRI)

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

  • SSRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.3 million.
  • SSRI has traded 417,455 shares today.
  • SSRI is trading at 4.22 times the normal volume for the stock at this time of day.
  • SSRI is trading at a new high 8.03% 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.

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More details on SSRI:

Silver Standard Resources Inc. engages in the acquisition, exploration, development, and operation of precious metal mineral properties in the Americas. The company primarily explores for silver, gold, zinc, and lead deposits. Currently there is 1 analyst that rates Silver Standard Resources a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Silver Standard Resources has been 1.7 million shares per day over the past 30 days. Silver Standard has a market cap of $442.5 million and is part of the basic materials sector and metals & mining industry. Shares are up 9.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Silver Standard Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

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 393.9% when compared to the same quarter one year ago, falling from $29.81 million to -$87.61 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 44.16%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 394.59% compared to the year-earlier 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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Metals & Mining industry and the overall market, SILVER STANDARD RES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • SILVER STANDARD RES 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. 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, SILVER STANDARD RES INC continued to lose money by earning -$1.57 versus -$2.79 in the prior year.
  • Net operating cash flow has significantly increased by 339.35% to $63.78 million when compared to the same quarter last year. In addition, SILVER STANDARD RES INC has also vastly surpassed the industry average cash flow growth rate of -46.77%.

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