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Tickers in this Article: MUX, HMY, EGO, RGLD, SA, SVM, CDE
So far today, the Nasdaq has fallen 0.6%, the S&P 500 is unchanged and the Dow has risen 0.1%.

These are the biggest movers in the Gold and Silver sector (SLV) (+0.2%):
CompanyMarket CapPercentage Change
McEwen Mining (NYSE:MUX)$800.7 million+2.3%
Harmony Gold Mining Co (NYSE:HMY)$3.89 billion-2.2%
Eldorado Gold Corporation (NYSE:EGO)$10.47 billion-2.1%
Royal Gold (Nasdaq:RGLD)$5.32 billion-2%
Seabridge Gold, Inc (NYSE:SA)$776.9 million+1.4%
Silvercorp Metals Inc (NYSE:SVM)$1.09 billion+1.1%
Coeur d\'Alene (NYSE:CDE)$2.25 billion-1%
Forex Broker Summary: UFXMarkets

Increasing 2.3%, McEwen Mining (NYSE:MUX) is trading at $4.45 per share. The company is currently trading a volume of 1.1 million shares. 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. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. MUX's stock is trading for less than its book value as can be seen from it's P/B value of 0.94. This is due to one of two possibilities: that the stock is being unfairly or incorrectly undervalued by investors because of some transitory circumstance and represents an attractive buying opportunity at a bargain price or that the market's low opinion and valuation of the company are correct, at least over the foreseeable future. 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

At $8.82, Harmony Gold Mining Co (NYSE:HMY) has slipped 2.2%. This morning, 574,951 shares have been traded, lighter than yesterday's volume of 2.1 million shares. 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 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. The dividend yield is calculated by dividing a company's dividends per share by its stock price. HMY's dividend yield of 1.3% is fairly low. If you are an income investor, this stock may not be attractive to you. It is important to remember that while a higher dividend yield is more attractive, all else being equal, a higher dividend yield can also indicate greater perceived risk. SEE: Due Diligence On Dividends

Slipping 2.1%, Eldorado Gold Corporation (NYSE:EGO) is currently trading at $14.37 per share. So far today, 1.8 million shares have changed hands. This is in keeping with the average volume over the past three months. 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. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. While measuring a price/earnings ratio (P/E ratio) is a popular valuation technique, the measure cannot be calculated for companies without earnings, so some investors analyze the price/sales ratio. EGO's P/S ratio of 7.65 is on the high side. This could be a good sign if the share price increases. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.

Royal Gold (Nasdaq:RGLD) has fallen 2% and is currently trading at $88.62 per share. The company's volume is currently 360,726 shares for the day, consistent with its current daily average. Volume indicates the level of interest that investors have in a company at its current price. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. RGLD has a debt ratio of 22.5%, 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. 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.

After an increase of 1.4%, Seabridge Gold, Inc (NYSE:SA) has reached a current price of $18.13. So far today, 103,465 shares have changed hands. 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. 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. SA's stock is trading for more than its book value with a P/B ratio of 3.6. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Investment Valuation Ratios: Price/Book Value Ratio

Silvercorp Metals Inc (NYSE:SVM) has risen 1.1% to hit a current price of $6.45 per share. So far today, the company's volume is 495,300 shares, on pace to finish the day below yesterday's volume of 1.4 million shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The dividend yield is measured by taking the annual dividends per share and dividing that number by the stock price. SVM has a dividend yield of 1.6%, which is fairly low. This could indicate that that the stock is overpriced or that future dividends might be higher. For income-oriented investors such as retirees, a stock with a high dividend yield may be more attractive than a stock with a low dividend yield. SEE: Investment Valuation Ratios: Dividend Yield

Coeur d'Alene (NYSE:CDE) is down 1% to reach $24.75 per share. So far today, the company's volume is 603,186 shares. This is in keeping with its current three-month average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The price/sales ratio measures a company's stock market price by its revenues. The P/S ratio for CDE is a high 1.5. 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 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.

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