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AngloGold Ashanti Limited Among Gold and Silver's Biggest Movers on August 17, 2012
So far today, the Nasdaq has moved up 0.3%, the S&P 500 has risen 0.1% and the Dow is trading down 0.1%.
These are the biggest movers in the Gold and Silver sector (SLV) (+0.6%):
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Harmony Gold Mining Co (NYSE:HMY) has fallen 6.4% and is currently trading at $9.60 per share. At 1.2 million shares, the company's volume so far today is 0.9 times the average volume over the last three months. Volume is an important indicator because it indicates how significant a price shift is. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. The debt-equity (D/E) ratio is a leverage ratio. HMY's debt-equity ratio of 5% is on the low end. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
At $5.41, Silvercorp Metals Inc (NYSE:SVM) has slipped 2.9%. The company's volume is currently 588,744 shares. This is about the same trading activity as there was yesterday. A stock's volume conveys how excited investors are about it. A company's investment value can be estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. The debt ratio for SVM is a low 24.9%. A low debt ratio means the company has more available cash flow. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.
Currently trading at $33.02 per share, Compania de Minas Buenaventura SA (NYSE:BVN) has fallen 2.4%. The company's volume is currently 237,805 shares for the day, 0.3 times the average daily volume. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Investment valuation ratios can be very useful in determining the value of a stock, but it is very important to keep in mind that while some financial ratios have general rules (or a broad application), in most instances it is a prudent practice to look at a company's historical performance and use peer company/industry comparisons to put any given company's ratio in perspective. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). BVN has a P/E ratio of 9.9. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Understanding The P/E Ratio
Falling 2.1%, AngloGold Ashanti Limited (NYSE:AU) is currently at a share price of $34.62. The company's volume for the day so far is 555,475 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Valuation ratios like the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield are useful in determining how attractive a potential or existing investment is. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. AU has a fairly low capitalization ratio of 29.3%. Investors generally consider a company with low debt and high equity levels is a good quality investment. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.
AuRico Gold (NYSE:AUQ) is at $6.59 per share after an increase of 2%. With 633,865 shares changing hands so far today, the company's volume is 0.3 times the current three-month average. If a stock price makes a big move up or down, volume lets us know the significance of that move. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. AUQ has a P/B ratio of 0.82, which shows that its book value is higher than its share price. Industries that require more infrastructure capital (for each dollar of profit) will usually trade at P/B ratios much lower than those that don't. P/B value ratios are particularly useful to value investors, distressed or "vulture" investors, or any other investors purchasing beaten-down securities but are less useful to investors focused on growth stocks, purchasing IPOs, or investing in technology or other "asset-lite" companies. SEE: How Buybacks Warps The Price-To-Book Ratio
IAMGOLD Corporation (NYSE:IAG) has increased to a share price of $12.03, a 1.9% rise. So far today, 1.3 million shares of the company's stock have changed hands. This is about the same trading activity as there was yesterday. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The dividend yield is calculated by dividing a company's dividends per share by its stock price. IAG has a dividend yield of 2.1%. High dividend yields are generally more important to value investors, investors in larger companies, and income oriented investors than they are to growth investors, investors in small cap stocks, and investors in new or emerging companies. SEE: Dividend Yield For The Downturn
Gold Fields Limited (NYSE:GFI) is currently trading at a share price of $13.69, a 1.8% decline. The company's volume is currently 1.6 million shares for the day, in line with the current daily average. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The price/sales ratio measures a company's stock market price by its revenues. The P/S ratio for GFI is 1.9, which is relatively high. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. A limitation of the P/S ratio is that the price component measures only stock market captialization, while sales are a function of the entire capital structure, potentially leading to wide differences between levered and unlevered companies.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. It is important to weigh current activity against historical performance when making any investment decisions. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
These are the biggest movers in the Gold and Silver sector (SLV) (+0.6%):
| Company | Market Cap | Percentage Change |
| Harmony Gold Mining Co (NYSE:HMY) | $4.41 billion | -6.4% |
| Silvercorp Metals Inc (NYSE:SVM) | $950.9 million | -2.9% |
| Compania de Minas Buenaventura SA (NYSE:BVN) | $8.61 billion | -2.4% |
| AngloGold Ashanti Limited (NYSE:AU) | $13.55 billion | -2.1% |
| AuRico Gold (NYSE:AUQ) | $1.82 billion | +2% |
| IAMGOLD Corporation (NYSE:IAG) | $4.44 billion | +1.9% |
| Gold Fields Limited (NYSE:GFI) | $10.08 billion | -1.8% |
Harmony Gold Mining Co (NYSE:HMY) has fallen 6.4% and is currently trading at $9.60 per share. At 1.2 million shares, the company's volume so far today is 0.9 times the average volume over the last three months. Volume is an important indicator because it indicates how significant a price shift is. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. The debt-equity (D/E) ratio is a leverage ratio. HMY's debt-equity ratio of 5% is on the low end. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
At $5.41, Silvercorp Metals Inc (NYSE:SVM) has slipped 2.9%. The company's volume is currently 588,744 shares. This is about the same trading activity as there was yesterday. A stock's volume conveys how excited investors are about it. A company's investment value can be estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. The debt ratio for SVM is a low 24.9%. A low debt ratio means the company has more available cash flow. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.
Currently trading at $33.02 per share, Compania de Minas Buenaventura SA (NYSE:BVN) has fallen 2.4%. The company's volume is currently 237,805 shares for the day, 0.3 times the average daily volume. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Investment valuation ratios can be very useful in determining the value of a stock, but it is very important to keep in mind that while some financial ratios have general rules (or a broad application), in most instances it is a prudent practice to look at a company's historical performance and use peer company/industry comparisons to put any given company's ratio in perspective. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). BVN has a P/E ratio of 9.9. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Understanding The P/E Ratio
Falling 2.1%, AngloGold Ashanti Limited (NYSE:AU) is currently at a share price of $34.62. The company's volume for the day so far is 555,475 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Valuation ratios like the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield are useful in determining how attractive a potential or existing investment is. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. AU has a fairly low capitalization ratio of 29.3%. Investors generally consider a company with low debt and high equity levels is a good quality investment. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.
AuRico Gold (NYSE:AUQ) is at $6.59 per share after an increase of 2%. With 633,865 shares changing hands so far today, the company's volume is 0.3 times the current three-month average. If a stock price makes a big move up or down, volume lets us know the significance of that move. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. AUQ has a P/B ratio of 0.82, which shows that its book value is higher than its share price. Industries that require more infrastructure capital (for each dollar of profit) will usually trade at P/B ratios much lower than those that don't. P/B value ratios are particularly useful to value investors, distressed or "vulture" investors, or any other investors purchasing beaten-down securities but are less useful to investors focused on growth stocks, purchasing IPOs, or investing in technology or other "asset-lite" companies. SEE: How Buybacks Warps The Price-To-Book Ratio
IAMGOLD Corporation (NYSE:IAG) has increased to a share price of $12.03, a 1.9% rise. So far today, 1.3 million shares of the company's stock have changed hands. This is about the same trading activity as there was yesterday. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The dividend yield is calculated by dividing a company's dividends per share by its stock price. IAG has a dividend yield of 2.1%. High dividend yields are generally more important to value investors, investors in larger companies, and income oriented investors than they are to growth investors, investors in small cap stocks, and investors in new or emerging companies. SEE: Dividend Yield For The Downturn
Gold Fields Limited (NYSE:GFI) is currently trading at a share price of $13.69, a 1.8% decline. The company's volume is currently 1.6 million shares for the day, in line with the current daily average. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The price/sales ratio measures a company's stock market price by its revenues. The P/S ratio for GFI is 1.9, which is relatively high. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. A limitation of the P/S ratio is that the price component measures only stock market captialization, while sales are a function of the entire capital structure, potentially leading to wide differences between levered and unlevered companies.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. It is important to weigh current activity against historical performance when making any investment decisions. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
by
Investopedia Staff
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