Trade-Ideas LLC identified Gold Fields ( GFI) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Gold Fields as such a stock due to the following factors:

  • GFI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.0 million.
  • GFI has traded 395,402 shares today.
  • GFI is up 3.1% today.
  • GFI was down 8.5% yesterday.

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More details on GFI:

Gold Fields Limited operates as a gold mining company. The company engages in the exploration, extraction, processing, and smelting of gold and copper properties. It holds interests in eight operating mines in South Africa, Ghana, Australia, and Peru. The stock currently has a dividend yield of 0.3%. GFI has a PE ratio of 4. Currently there is 1 analyst that rates Gold Fields a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Gold Fields has been 6.9 million shares per day over the past 30 days. Gold Fields has a market cap of $3.0 billion and is part of the basic materials sector and metals & mining industry. Shares are up 27.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Gold Fields as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • 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 911.4% when compared to the same quarter one year ago, falling from -$25.50 million to -$257.90 million.
  • 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 Metals & Mining industry and the overall market on the basis of return on equity, GOLD FIELDS LTD underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • GOLD FIELDS LTD 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 year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GOLD FIELDS LTD swung to a loss, reporting -$0.31 versus $0.02 in the prior year. This year, the market expects an improvement in earnings ($0.23 versus -$0.31).
  • Despite the weak revenue results, GFI has outperformed against the industry average of 39.5%. Since the same quarter one year prior, revenues slightly dropped by 9.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • After a year of stock price fluctuations, the net result is that GFI's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.

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