Strong On High Volume: Coeur Mining (CDE)

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

  • CDE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.9 million.
  • CDE has traded 360,009 shares today.
  • CDE is trading at 2.99 times the normal volume for the stock at this time of day.
  • CDE is trading at a new high 4.04% 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 CDE:

Coeur Mining, Inc., through its subsidiaries, engages in the ownership, operation, exploration, and development of silver and gold mining properties primarily in the United States, Mexico, Bolivia, Argentina, Australia, Ecuador, Chile, and New Zealand. Currently there are 2 analysts that rate Coeur Mining a buy, 2 analysts rate it a sell, and 5 rate it a hold.

The average volume for Coeur Mining has been 3.1 million shares per day over the past 30 days. Coeur has a market cap of $739.6 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.75 and a short float of 11.5% with 3.19 days to cover. Shares are up 6.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

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

Highlights from the ratings report include:
  • 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, COEUR MINING INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for COEUR MINING INC is rather low; currently it is at 24.77%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -21.76% is significantly below that of the industry average.
  • CDE'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 36.15%, 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.
  • CDE's debt-to-equity ratio of 0.93 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.43 is sturdy.
  • Despite the weak revenue results, CDE has outperformed against the industry average of 18.2%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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