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

  • AG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.1 million.
  • AG has traded 70,867 shares today.
  • AG is down 5.9% today.
  • AG was up 5.6% yesterday.

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More details on AG:

First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver projects in Mexico. Currently there are 2 analysts that rate First Majestic Silver a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for First Majestic Silver has been 4.4 million shares per day over the past 30 days. First Majestic has a market cap of $1.5 billion and is part of the basic materials sector and metals & mining industry. Shares are up 200% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates First Majestic Silver as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • FIRST MAJESTIC SILVER CORP's earnings per share declined by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, FIRST MAJESTIC SILVER CORP reported poor results of -$0.70 versus -$0.53 in the prior year.
  • 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, FIRST MAJESTIC SILVER CORP'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 $17.63 million or 57.63% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • 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 significantly decreased by 59.5% when compared to the same quarter one year ago, falling from -$64.57 million to -$102.96 million.
  • Despite the weak revenue results, AG has significantly outperformed against the industry average of 42.0%. Since the same quarter one year prior, revenues slightly dropped by 8.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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