The Basic Materials sector as a whole closed the day down 1.8% versus the S&P 500, which was down 1.3%. Laggards within the Basic Materials sector included Timberline Resources ( TLR), down 5.0%, India Globalization Capital ( IGC), down 8.2%, Sutor Technology Group ( TOR), down 2.9%, Andatee China Marine Fuel Services ( AMCF), down 13.0% and Pacific Booker Minerals ( PBM), down 2.3%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today:

Andatee China Marine Fuel Services ( AMCF) is one of the companies that pushed the Basic Materials sector lower today. Andatee China Marine Fuel Services was down $0.04 (13.0%) to $0.26 on light volume. Throughout the day, 5,524 shares of Andatee China Marine Fuel Services exchanged hands as compared to its average daily volume of 33,200 shares. The stock ranged in price between $0.26-$0.30 after having opened the day at $0.30 as compared to the previous trading day's close of $0.30.

Andatee China Marine Fuel Services Corporation, through its subsidiaries, engages in the production, storage, distribution, and trading of blended marine fuel oil for cargo and fishing vessels in the People's Republic of China. Andatee China Marine Fuel Services has a market cap of $2.8 million and is part of the energy industry. Shares are down 80.6% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Andatee China Marine Fuel Services as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on AMCF go as follows:

  • The debt-to-equity ratio is very high at 2.80 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.36, which clearly demonstrates the inability to cover short-term cash needs.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, ANDATEE CHINA MARINE FUEL's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $0.74 million or 74.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • AMCF'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 82.56%, 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 gross profit margin for ANDATEE CHINA MARINE FUEL is currently extremely low, coming in at 5.63%. Regardless of AMCF's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.08% trails the industry average.

You can view the full analysis from the report here: Andatee China Marine Fuel Services Ratings Report

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At the close, India Globalization Capital ( IGC) was down $0.02 (8.2%) to $0.25 on light volume. Throughout the day, 25,467 shares of India Globalization Capital exchanged hands as compared to its average daily volume of 34,200 shares. The stock ranged in price between $0.22-$0.25 after having opened the day at $0.25 as compared to the previous trading day's close of $0.27.

India Globalization Capital, Inc., through its subsidiaries, engages in trading electronics; and the rental of heavy equipment in Hong Kong and India. India Globalization Capital has a market cap of $4.0 million and is part of the energy industry. Shares are down 59.9% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates India Globalization Capital as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on IGC go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Electronic Equipment, Instruments & Components industry average. The net income has significantly decreased by 31.0% when compared to the same quarter one year ago, falling from -$1.46 million to -$1.92 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 Electronic Equipment, Instruments & Components industry and the overall market, INDIA GLOBALIZATION CAPITAL's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for INDIA GLOBALIZATION CAPITAL is currently extremely low, coming in at 5.41%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -85.01% is significantly below that of the industry average.
  • IGC'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 67.08%, 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.
  • IGC's debt-to-equity ratio is very low at 0.22 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 0.74 is somewhat weak and could be cause for future problems.

You can view the full analysis from the report here: India Globalization Capital Ratings Report

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Timberline Resources ( TLR) was another company that pushed the Basic Materials sector lower today. Timberline Resources was down $0.02 (5.0%) to $0.38 on light volume. Throughout the day, 3,334 shares of Timberline Resources exchanged hands as compared to its average daily volume of 13,400 shares. The stock ranged in price between $0.38-$0.40 after having opened the day at $0.39 as compared to the previous trading day's close of $0.40.

Timberline Resources has a market cap of $5.0 million and is part of the energy industry. Shares are down 31.9% year-to-date as of the close of trading on Wednesday.

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