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Tickers in this Article: GFI, HMY, EXK, AU, EGO, AEM, SA
The market is currently up, with the Nasdaq increasing 0.1%, the S&P 500 moving up 0.3% and the Dow rising 0.4%.

The Gold and Silver sector (SLV) is down 1.1% on a good day for the market overall. The biggest movers in the sector so far are:
CompanyMarket CapPercentage Change
Gold Fields Limited (NYSE:GFI)$9.44 billion-4.2%
Harmony Gold Mining Co (NYSE:HMY)$3.74 billion-3.1%
Endeavour Silver Corp (NYSE:EXK)$944.2 million-2%
AngloGold Ashanti Limited (NYSE:AU)$13.22 billion-1.4%
Eldorado Gold Corporation (NYSE:EGO)$10.37 billion-1.3%
Agnico-Eagle Mines Limited (NYSE:AEM)$8.26 billion-1.2%
Seabridge Gold, Inc (NYSE:SA)$774.7 million-1.1%
Broker Summary: E-Trade Financial

Currently trading at $12.41 per share, Gold Fields Limited (NYSE:GFI) has fallen 4.2%. At 3.9 million shares, the company's volume so far today is 0.8 times its 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. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. A price/sales ratio is derived by dividing stock market price by company sales. GFI's P/S ratio of 1.9 is on the high side. This could be a good sign if the share price increases. 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.

Harmony Gold Mining Co (NYSE:HMY) has decreased to $8.40 per share, a 3.1% fall. So far today, 1.1 million shares have changed hands. If a stock price moves on high volume, this means that the change is a significant one. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. To a large degree, the debt-equity (D/E) ratio provides another vantage point on a company's leverage position, in this case, comparing total liabilities to shareholders' equity, as opposed to total assets in the debt ratio. HMY's debt-equity ratio of 5% is on the low end. This shows that the company's assets are financed primarily through equity. This easy-to-calculate ratio provides a general indication of a company's equity-liability relationship and is helpful to investors looking for a quick take on a company's leverage.

Endeavour Silver Corp (NYSE:EXK) is trading at $9.33 per share, down 2%. At one 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. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. EXK's P/B ratio of 3.47 shows that its share price is higher than its book value. It is important to take the company's debt into account when using the P/B ratio as debt can boost a company's liabilities to the point where they wipe out much of the book value of its hard assets, creating artificially high P/B values. To put things in perspective, should be made among companies in the same industry rather than across industries. SEE: Investment Valuation Ratios: Price/Book Value Ratio

Falling 1.4%, AngloGold Ashanti Limited (NYSE:AU) is currently at a share price of $33.82. So far today, 703,803 shares of the company's stock have changed hands. This is on pace to reach yesterday's trading volume of 1.2 million shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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. Dividend yield measures the income that a stock will generate for an investor. AU has a dividend yield of 1.2%, which is fairly low. This could indicate that that the stock is overpriced or that future dividends might be higher. 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: Due Diligence On Dividends

After a decline of 1.3%, Eldorado Gold Corporation (NYSE:EGO) has hit a share price of $14.36. At 2.2 million shares, the company's volume so far today is 0.6 times the average daily volume. 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. 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. There are generally two price/earnings ratios calculated: the first, called the trailing Price/Earnings ratio, is calculated using the previous years actual earnings; the second, called forward Price/Earnings ratio, is calculated using the next year's estimated earnings. EGO has a P/E ratio of 27.5. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: Investment Valuation Ratios: Price/Earnings Ratio

At $47.59, Agnico-Eagle Mines Limited (NYSE:AEM) has slipped 1.2%. The company's volume for the day so far is 976,267 shares. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. AEM has a debt ratio of 35.4%, which is fairly low. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. 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.

Seabridge Gold, Inc (NYSE:SA) is currently trading at a share price of $17.63, a 1.1% decline. With 107,098 shares changing hands so far today, the company's volume is 0.4 times the current three-month average. As a stock moves up or down, it is important to pay attention to the trading volume. This indicates the level of interest: the higher the volume, the more the interest. 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. One of the favorite tools of many value investors is analyzing price/book value ratios, as it provides a measure of the underlying value of a company's assets as compared to the valuation of its equity. The P/B ratio for SA is 3.5, indicating that the stock is trading for more than its book value. This implies that investors expect management to create more value from a given set of assets and/or that the market value of the firm's assets is significantly higher than their accounting value. 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

The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.

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