Trade-Ideas: Silver Standard Resources (SSRI) Is Today's

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

  • SSRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.7 million.
  • SSRI has traded 337,282 shares today.
  • SSRI is down 3.7% today.
  • SSRI was up 7.7% yesterday.

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More details on SSRI:

Silver Standard Resources Inc. engages in the acquisition, exploration, development, and operation of precious metal resource properties in the Americas. The company primarily explores for gold, silver, zinc, and lead deposits. Currently there are 3 analysts that rate Silver Standard Resources a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Silver Standard Resources has been 2.8 million shares per day over the past 30 days. Silver Standard has a market cap of $1.1 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of -0.24 and a short float of 1.4% with 1.28 days to cover. Shares are up 185.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Silver Standard Resources as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, SSRI's share price has jumped by 106.84%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.72, which clearly demonstrates the ability to cover short-term cash needs.
  • Despite the weak revenue results, SSRI has significantly outperformed against the industry average of 45.6%. Since the same quarter one year prior, revenues slightly dropped by 9.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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, SILVER STANDARD RES INC'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 $12.72 million or 58.69% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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