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

  • HL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.6 million.
  • HL has traded 981,286 shares today.
  • HL is up 3.3% today.
  • HL was down 7.6% yesterday.

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More details on HL:

Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, produces, and markets precious and base metal deposits worldwide. The stock currently has a dividend yield of 0.2%. HL has a PE ratio of 31. Currently there are no analysts that rate Hecla Mining a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Hecla Mining has been 10.0 million shares per day over the past 30 days. Hecla has a market cap of $2.4 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.33 and a short float of 10.9% with 3.38 days to cover. Shares are up 200.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Hecla Mining as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, 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, weak operating cash flow and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 45.3%. Since the same quarter one year prior, revenues rose by 10.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, HL has a quick ratio of 1.50, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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, HECLA MINING CO underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Net operating cash flow has decreased to $18.75 million or 12.47% 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.

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