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AngloGold Ashanti Limited Among Gold and Silver's Biggest Movers on August 23, 2012
The Nasdaq has slipped 0.2%, the S&P 500 has fallen 0.4% and the Dow is trading down 0.6% on a bad morning for the market.
The Gold and Silver sector (SLV) has risen 3.1% despite little change in the market overall. Currently, the biggest movers in the sector are:
Broker Summary: E-Trade Financial
After an increase of 5.9%, Silver Standard Resources Inc (Nasdaq:SSRI) has reached a current price of $14.84. At 1.3 million shares, the company's volume so far today is 1.5 times the average daily volume. 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 can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. SSRI's debt-equity ratio of 13% 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.
Randgold Resources Ltd (Nasdaq:GOLD) has risen 2.8% to hit a current price of $101.58 per share. So far today, the company's volume is 322,711 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. GOLD has a debt ratio of 15.2%, which is fairly low. In other words, the company is less sensitive to changes in business or interest rates since less of its cash flow is dedicated to paying off loan expenses. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
After rising 2.5%, First Majestic (NYSE:AG) is currently trading at a share price of $19.63. With 634,324 shares changing hands so far today, the company's volume is one times the average volume over the last three months. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. A simple P/E ratio can reveal the stock's real market value and show how the valuation compares to its industry group or a benchmark like the S&P 500 Index. AG's P/E ratio of 17.6 is above the industry average of 0.48. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Investment Valuation Ratios: Price/Earnings Ratio
Falling 2.1%, AngloGold Ashanti Limited (NYSE:AU) is currently at a share price of $34.02. So far today, the company's volume is 845,069 shares. Volume is used to evaluate how meaningful the price movement of a stock is. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The capitalization ratio measures the debt component of the capital structure, or capitalization of a company (i.e., the sum of long-term debt liabilities and shareholder equity) to support operations and growth. AU's capitalization ratio is 29.3%, which is relatively low. Investors generally consider a company with low debt and high equity levels is a good quality investment. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.
Seabridge Gold, Inc (NYSE:SA) is at $16.43 per share after an increase of 2%. So far today, the company's volume is 242,160 shares, one times the current daily average. A stock's volume conveys how excited investors are about it. A company's value as an investment is more easily 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 price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. SA has a P/B ratio of 3.26 which shows that its share price is higher than its book value. This may be a sign that the company is overvalued. 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: Using The Price-To-Book Ratio To Evaluate Companies
Royal Gold (Nasdaq:RGLD) has increased to a share price of $84.80, a 1.9% rise. The company is currently trading a volume of 414,661 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The dividend yield is measured by taking the annual dividends per share and dividing that number by the stock price. RGLD has a dividend yield of 0.7%, which is fairly low. A company with a low dividend yield may be a safer investment in the long run. 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: Guide To Stock-Picking Strategies: Income Investing
Increasing 1.8%, Compania de Minas Buenaventura SA (NYSE:BVN) is trading at $34 per share. The company's volume is currently 358,654 shares for the day, 0.4 times its current three-month average. The trading volume for a stock indicates the level of investor interest. Valuation ratios allow the investor to make a quick determination as to a company's investment value. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. BVN's P/S ratio of 6.18 is on the high side. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
The Gold and Silver sector (SLV) has risen 3.1% despite little change in the market overall. Currently, the biggest movers in the sector are:
| Company | Market Cap | Percentage Change |
| Silver Standard Resources Inc (Nasdaq:SSRI) | $1.13 billion | +5.9% |
| Randgold Resources Ltd (Nasdaq:GOLD) | $9.08 billion | +2.8% |
| First Majestic (NYSE:AG) | $2.21 billion | +2.5% |
| AngloGold Ashanti Limited (NYSE:AU) | $13.39 billion | -2.1% |
| Seabridge Gold, Inc (NYSE:SA) | $699.6 million | +2% |
| Royal Gold (Nasdaq:RGLD) | $4.89 billion | +1.9% |
| Compania de Minas Buenaventura SA (NYSE:BVN) | $8.5 billion | +1.8% |
After an increase of 5.9%, Silver Standard Resources Inc (Nasdaq:SSRI) has reached a current price of $14.84. At 1.3 million shares, the company's volume so far today is 1.5 times the average daily volume. 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 can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. SSRI's debt-equity ratio of 13% 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.
Randgold Resources Ltd (Nasdaq:GOLD) has risen 2.8% to hit a current price of $101.58 per share. So far today, the company's volume is 322,711 shares. In technical analysis, trading volume is used to determine the strength of a market indicator. While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. GOLD has a debt ratio of 15.2%, which is fairly low. In other words, the company is less sensitive to changes in business or interest rates since less of its cash flow is dedicated to paying off loan expenses. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
After rising 2.5%, First Majestic (NYSE:AG) is currently trading at a share price of $19.63. With 634,324 shares changing hands so far today, the company's volume is one times the average volume over the last three months. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. A simple P/E ratio can reveal the stock's real market value and show how the valuation compares to its industry group or a benchmark like the S&P 500 Index. AG's P/E ratio of 17.6 is above the industry average of 0.48. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Investment Valuation Ratios: Price/Earnings Ratio
Falling 2.1%, AngloGold Ashanti Limited (NYSE:AU) is currently at a share price of $34.02. So far today, the company's volume is 845,069 shares. Volume is used to evaluate how meaningful the price movement of a stock is. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The capitalization ratio measures the debt component of the capital structure, or capitalization of a company (i.e., the sum of long-term debt liabilities and shareholder equity) to support operations and growth. AU's capitalization ratio is 29.3%, which is relatively low. Investors generally consider a company with low debt and high equity levels is a good quality investment. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.
Seabridge Gold, Inc (NYSE:SA) is at $16.43 per share after an increase of 2%. So far today, the company's volume is 242,160 shares, one times the current daily average. A stock's volume conveys how excited investors are about it. A company's value as an investment is more easily 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 price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. SA has a P/B ratio of 3.26 which shows that its share price is higher than its book value. This may be a sign that the company is overvalued. 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: Using The Price-To-Book Ratio To Evaluate Companies
Royal Gold (Nasdaq:RGLD) has increased to a share price of $84.80, a 1.9% rise. The company is currently trading a volume of 414,661 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The dividend yield is measured by taking the annual dividends per share and dividing that number by the stock price. RGLD has a dividend yield of 0.7%, which is fairly low. A company with a low dividend yield may be a safer investment in the long run. 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: Guide To Stock-Picking Strategies: Income Investing
Increasing 1.8%, Compania de Minas Buenaventura SA (NYSE:BVN) is trading at $34 per share. The company's volume is currently 358,654 shares for the day, 0.4 times its current three-month average. The trading volume for a stock indicates the level of investor interest. Valuation ratios allow the investor to make a quick determination as to a company's investment value. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. BVN's P/S ratio of 6.18 is on the high side. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. 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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