3 Stocks Pushing The Metals & Mining Industry Lower

The Metals & Mining industry as a whole closed the day up 0.6% versus the S&P 500, which was down 1.3%. Laggards within the Metals & Mining industry included Timberline Resources ( TLR), down 5.0%, India Globalization Capital ( IGC), down 8.2%, Sutor Technology Group ( TOR), down 2.9%, Pacific Booker Minerals ( PBM), down 2.3% and Entree Gold ( EGI), down 1.7%.

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

Entree Gold ( EGI) is one of the companies that pushed the Metals & Mining industry lower today. Entree Gold was down $0.00 (1.7%) to $0.30 on heavy volume. Throughout the day, 61,268 shares of Entree Gold exchanged hands as compared to its average daily volume of 38,400 shares. The stock ranged in price between $0.28-$0.30 after having opened the day at $0.28 as compared to the previous trading day's close of $0.30.

Entree Gold has a market cap of $44.1 million and is part of the basic materials sector. Shares are up 74.9% year-to-date as of the close of trading on Wednesday.

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.

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 basic materials sector. Shares are down 59.9% year-to-date as of the close of trading on Wednesday.

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.

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

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.

Timberline Resources ( TLR) was another company that pushed the Metals & Mining industry 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 basic materials sector. Shares are down 31.9% year-to-date as of the close of trading on Wednesday.

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.

More from Markets

FTC Chair Says Agency Is Ready to Take on Big Tech; Walgreens Joins Dow -- ICYMI

FTC Chair Says Agency Is Ready to Take on Big Tech; Walgreens Joins Dow -- ICYMI

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

Zoom CEO Eric Yuan Leads Glassdoor's List of Top 100 CEOs

Zoom CEO Eric Yuan Leads Glassdoor's List of Top 100 CEOs

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists