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

  • IAG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.3 million.
  • IAG has traded 872,590 shares today.
  • IAG is up 3.1% today.
  • IAG was down 6.7% yesterday.

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More details on IAG:

IAMGOLD Corporation explores for, develops, and operates mining properties in North and South America, and West Africa. The company explores for gold, copper, zinc, and silver. Currently there is 1 analyst that rates Iamgold a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for Iamgold has been 8.7 million shares per day over the past 30 days. Iamgold has a market cap of $1.9 billion and is part of the basic materials sector and metals & mining industry. Shares are up 213.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Iamgold as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and poor profit margins.

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, IAMGOLD CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for IAMGOLD CORP is currently lower than what is desirable, coming in at 30.95%. Regardless of IAG's low profit margin, it has managed to increase from the same period last year.
  • IAMGOLD CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, IAMGOLD CORP reported poor results of -$2.04 versus -$0.71 in the prior year.
  • Despite the weak revenue results, IAG has significantly outperformed against the industry average of 45.3%. Since the same quarter one year prior, revenues fell by 10.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The current debt-to-equity ratio, 0.32, 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 4.08, which clearly demonstrates the ability to cover short-term cash needs.

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