NEW YORK (TheStreet) -- Shares of B2Gold Corp. (BTG) are up by 1.78% to $1.72 on heavy volume in mid-afternoon trading on Thursday, as some mining and related stocks get a jolt from the continuing rise in gold prices.
The yellow metal is extending Wednesday's gains, rising to a nearly three-month high earlier in the day, due to weak economic data and a decline in the dollar.
Gold for June delivery is up by 0.30% to $1,221.80 per ounce on the COMEX this afternoon. The dollar is slipping by 0.11%, according to the Wall Street Journal dollar index.
Economic data showed that retail sales in April hardly moved, a sign that consumers weren't spending, the Journal said, adding that the retail results sparked hope that the Fed will not be raising interest rates until further into the second half of the year.
Additionally, B2Gold is scheduled to report its 2015 first quarter earnings results before the market open tomorrow morning. Analysts are expecting the Canada-based gold producer to post break even earnings on revenue of $130.21 million for the period.
Separately, TheStreet Ratings team rates B2GOLD CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate B2GOLD CORP (BTG) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- B2GOLD CORP 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 has reported a trend of declining earnings per share over the past two years. During the past fiscal year, B2GOLD CORP swung to a loss, reporting -$0.84 versus $0.07 in the prior year.
- 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 1456.3% when compared to the same quarter one year ago, falling from $26.22 million to -$355.63 million.
- 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, B2GOLD CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 44.41%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 2050.00% 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.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 18.2%. Since the same quarter one year prior, revenues fell by 11.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: BTG Ratings Report