Trade-Ideas LLC identified Iamgold ( IAG) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Iamgold as such a stock due to the following factors:

  • IAG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.1 million.
  • IAG has traded 243,468 shares today.
  • IAG is down 6.2% today.
  • IAG was up 10.2% yesterday.

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More details on IAG:

IAMGOLD Corporation primarily engages in the exploration, development, and operation of gold mining properties. It also explores for silver and copper deposits. Currently there are no analysts that rate Iamgold a buy, 3 analysts rate it a sell, and 3 rate it a hold.

The average volume for Iamgold has been 4.3 million shares per day over the past 30 days. Iamgold has a market cap of $747.6 million and is part of the basic materials sector and metals & mining industry. Shares are up 45.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Iamgold as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The gross profit margin for IAMGOLD CORP is rather low; currently it is at 23.27%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has significantly decreased to $9.80 million or 91.50% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • IAG'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 35.32%, which is also worse than the performance of the S&P 500 Index. 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 change in net income from the same quarter one year ago has significantly exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income has decreased by 15.6% when compared to the same quarter one year ago, dropping from -$72.50 million to -$83.80 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, IAMGOLD CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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