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Gold and Silver Sector's Biggest Movers for July 25, 2012: SA and More
So far today, the Nasdaq has declined 0.8%, the S&P 500 is down 0.2% and the Dow is up 0.4%.
These are the biggest movers in the Gold and Silver sector (SLV) (+0.8%):
Forex Broker Summary: UFXMarkets
Seabridge Gold, Inc (NYSE:SA) has risen 4.5% to hit a current price of $14.52 per share. So far today, the company's volume is 125,111 shares. This is on pace to reach yesterday's trading volume of 217,036 shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The debt ratio shows the proportion of assets that a company is financing through debt. The debt ratio for SA is a low 5%. A low debt ratio means the company has more available cash flow. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
First Majestic (NYSE:AG) has risen 3.9% and is currently trading at $16.05 per share. At 342,863 shares, the company's volume so far today is 0.8 times the current three-month average. 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 debt-equity (D/E) ratio is a leverage ratio. AG has a debt-equity ratio of 4%, which is on the low side. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. 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.
Silver Standard Resources Inc (Nasdaq:SSRI) is currently trading at $12.14 per share, a 3.8% increase. So far today, the company's volume is 479,846 shares. The trading volume for a stock indicates the level of investor 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. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. The P/E ratio for SSRI is 13.6, above the industry average of 1.01. Generally speaking, the higher the P/E ratio, the higher the market expectations for a company's future performance. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: How To Find P/E And PEG Ratios
Rising 3%, Randgold Resources Ltd (Nasdaq:GOLD) is currently trading at $86.21 per share. At 197,109 shares, the company's volume so far today is 0.4 times its current daily average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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 price/earnings to growth (PEG) ratio is calculated by dividing the price/earnings ratio by growth in earnings-per-share; the lower the PEG ratio, the more reasonably valued the security. GOLD has a PEG ratio of 1.99. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Newmont Mining (NYSE:NEM) has moved up 2.8% and is currently trading at $45.59 per share. So far today, two million shares of the company's stock have changed hands. This is on pace to reach yesterday's trading volume of 4.5 million 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. Valuation ratios include 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, often expressed simply as "price-to-book", provides investors a way to compare the market value, or what they are paying for each share, to a conservative measure of the value of the firm. NEM's stock is trading for more than its book value with a P/B ratio of 1.71. This may be a sign that the company is overvalued. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: Investment Valuation Ratios: Price/Book Value Ratio
AngloGold Ashanti Limited (NYSE:AU) has increased to a share price of $32.82, a 2.6% rise. With 671,729 shares changing hands so far today, the company's volume is 0.4 times its average over the past three months. In technical analysis, trading volume is used to determine the strength of a market indicator. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. AU's dividend yield of 1.3% is fairly low. This could indicate that that the stock is overpriced or that future dividends might be higher. Simply comparing the level of dividends that two stocks pay does not give a true reflection of which security is more attractive, so investors calculate the dividend yield in order to standardize dividend payments. SEE: Dividend Yield For The Downturn
Goldcorp Inc (NYSE:GG) is at $33.76 per share after an increase of 2.4%. So far today, 2.2 million shares have changed hands. If a stock price moves on high volume, this means that the change is a significant one. 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 price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. The P/S ratio for GG is 6.65, which is relatively high. 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.
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.
These are the biggest movers in the Gold and Silver sector (SLV) (+0.8%):
| Company | Market Cap | Percentage Change |
| Seabridge Gold, Inc. (USA) (NYSE:SA) | $603.6 million | +4.5% |
| First Majestic Silver Corp (NYSE:AG) | $1.63 billion | +3.9% |
| Silver Standard Resources Inc. (USA) (Nasdaq:SSRI) | $943.9 million | +3.8% |
| Randgold Resources Ltd. (ADR) (Nasdaq:GOLD) | $7.67 billion | +3% |
| Newmont Mining (NYSE:NEM) | $21.75 billion | +2.8% |
| AngloGold Ashanti Limited (ADR) (NYSE:AU) | $12.22 billion | +2.6% |
| Goldcorp Inc. (USA) (NYSE:GG) | $26.7 billion | +2.4% |
Seabridge Gold, Inc (NYSE:SA) has risen 4.5% to hit a current price of $14.52 per share. So far today, the company's volume is 125,111 shares. This is on pace to reach yesterday's trading volume of 217,036 shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The debt ratio shows the proportion of assets that a company is financing through debt. The debt ratio for SA is a low 5%. A low debt ratio means the company has more available cash flow. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
First Majestic (NYSE:AG) has risen 3.9% and is currently trading at $16.05 per share. At 342,863 shares, the company's volume so far today is 0.8 times the current three-month average. 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 debt-equity (D/E) ratio is a leverage ratio. AG has a debt-equity ratio of 4%, which is on the low side. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. 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.
Silver Standard Resources Inc (Nasdaq:SSRI) is currently trading at $12.14 per share, a 3.8% increase. So far today, the company's volume is 479,846 shares. The trading volume for a stock indicates the level of investor 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. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. The P/E ratio for SSRI is 13.6, above the industry average of 1.01. Generally speaking, the higher the P/E ratio, the higher the market expectations for a company's future performance. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: How To Find P/E And PEG Ratios
Rising 3%, Randgold Resources Ltd (Nasdaq:GOLD) is currently trading at $86.21 per share. At 197,109 shares, the company's volume so far today is 0.4 times its current daily average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. 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 price/earnings to growth (PEG) ratio is calculated by dividing the price/earnings ratio by growth in earnings-per-share; the lower the PEG ratio, the more reasonably valued the security. GOLD has a PEG ratio of 1.99. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Newmont Mining (NYSE:NEM) has moved up 2.8% and is currently trading at $45.59 per share. So far today, two million shares of the company's stock have changed hands. This is on pace to reach yesterday's trading volume of 4.5 million 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. Valuation ratios include 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, often expressed simply as "price-to-book", provides investors a way to compare the market value, or what they are paying for each share, to a conservative measure of the value of the firm. NEM's stock is trading for more than its book value with a P/B ratio of 1.71. This may be a sign that the company is overvalued. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: Investment Valuation Ratios: Price/Book Value Ratio
AngloGold Ashanti Limited (NYSE:AU) has increased to a share price of $32.82, a 2.6% rise. With 671,729 shares changing hands so far today, the company's volume is 0.4 times its average over the past three months. In technical analysis, trading volume is used to determine the strength of a market indicator. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. AU's dividend yield of 1.3% is fairly low. This could indicate that that the stock is overpriced or that future dividends might be higher. Simply comparing the level of dividends that two stocks pay does not give a true reflection of which security is more attractive, so investors calculate the dividend yield in order to standardize dividend payments. SEE: Dividend Yield For The Downturn
Goldcorp Inc (NYSE:GG) is at $33.76 per share after an increase of 2.4%. So far today, 2.2 million shares have changed hands. If a stock price moves on high volume, this means that the change is a significant one. 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 price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. The P/S ratio for GG is 6.65, which is relatively high. 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.
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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