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

  • MUX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.6 million.
  • MUX has traded 373,431 shares today.
  • MUX is trading at 2.86 times the normal volume for the stock at this time of day.
  • MUX is trading at a new high 6.19% 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 MUX:

McEwen Mining Inc. explores for, develops, produces, and sells precious and base metals in Argentina, Mexico, and the United States. It primarily explores for gold, silver, and copper. The stock currently has a dividend yield of 0.6%. Currently there is 1 analyst that rates McEwen Mining a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for McEwen Mining has been 1.5 million shares per day over the past 30 days. McEwen has a market cap of $502.6 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of -1.42 and a short float of 9.5% with 10.25 days to cover. Shares are up 83% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates McEwen Mining as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

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, MCEWEN MINING INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • MCEWEN MINING INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MCEWEN MINING INC reported poor results of -$1.04 versus -$0.50 in the prior year. This year, the market expects an improvement in earnings ($0.01 versus -$1.04).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 120.2% when compared to the same quarter one year prior, rising from -$13.03 million to $2.63 million.
  • This stock has increased by 72.22% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in MUX do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • MUX's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels.

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