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Gold and Silver Stocks, Including Goldcorp Inc, Making Big Moves on October 2, 2012
So far today, the Nasdaq has moved up 0.4%, the S&P 500 has risen 0.1% and the Dow is down 0.2%.
The Gold and Silver sector (SLV) is trading up 0.1% so far today and here are its biggest movers:
Broker Summary: OptionsXpress Online Trading Platform
After a decline of 2.4%, Coeur d'Alene (NYSE:CDE) has hit a share price of $28.44. At 1.5 million shares, the company's volume so far today is consistent with its current daily average. A stock's volume conveys how excited investors are about it. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. CDE has a high P/S ratio of 1.5. 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.
Kinross Gold Corporation (NYSE:KGC) has risen 2% and is currently trading at $10.58 per share. The company's volume for the day so far is 5.6 million shares. 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. The debt ratio shows the proportion of assets that a company is financing through debt. KGC has a low debt ratio of 25.1%. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
AngloGold Ashanti Limited (NYSE:AU) is trading at $34.69 per share, down 1.7%. With 898,352 shares changing hands so far today, the company's volume is 0.4 times the current three-month average. 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. The debt-equity (D/E) ratio is a leverage ratio. AU's debt-equity ratio of 44% 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 percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
Gold Fields Limited (NYSE:GFI) has fallen 1.4% and is currently trading at $12.71 per share. So far today, the company's volume is 2.1 million shares. This is about the same trading activity as there was yesterday. Volume indicates the level of interest that investors have in a company at its current price. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. GFI's P/B ratio of 1.6 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. A weakness of the P/B value ratio is that while the price component is easily determined by looking at the stock quote, the book value component is more difficult to estimate and more open to individual interpretation and analysis. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Goldcorp Inc (NYSE:GG) is down 1.2% to reach $45.64 per share. So far today, the company's volume is 1.9 million shares, 0.3 times the average daily volume. In technical analysis, trading volume is used to determine the strength of a market indicator. 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 P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. GG's P/E ratio of 29.4 is above the industry average of 0.45. 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: The P/E Ratio: A Good Market-Timing Indicator
Slipping 1.1%, Seabridge Gold, Inc (NYSE:SA) is currently trading at $19.04 per share. So far today, the company's volume is 46,619 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. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. The debt ratio for SA is a low 4.9%. 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.
Falling 1.1%, Silver Standard Resources Inc (Nasdaq:SSRI) is currently at a share price of $15.73. So far today, the company's volume is 187,720 shares, 0.1 times its current three-month average. Volume is used to evaluate how meaningful the price movement of a stock is. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. SSRI has a low debt-equity ratio of 13%. This shows that the company's assets are financed primarily through equity. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
The Gold and Silver sector (SLV) is trading up 0.1% so far today and here are its biggest movers:
| Company | Market Cap | Percentage Change |
| Coeur d\'Alene (NYSE:CDE) | $2.62 billion | -2.4% |
| Kinross Gold Corporation (NYSE:KGC) | $11.82 billion | +2% |
| AngloGold Ashanti Limited (NYSE:AU) | $13.59 billion | -1.7% |
| Gold Fields Limited (NYSE:GFI) | $9.39 billion | -1.4% |
| Goldcorp Inc (NYSE:GG) | $37.45 billion | -1.2% |
| Seabridge Gold, Inc (NYSE:SA) | $836.9 million | -1.1% |
| Silver Standard Resources Inc (Nasdaq:SSRI) | $1.28 billion | -1.1% |
After a decline of 2.4%, Coeur d'Alene (NYSE:CDE) has hit a share price of $28.44. At 1.5 million shares, the company's volume so far today is consistent with its current daily average. A stock's volume conveys how excited investors are about it. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. CDE has a high P/S ratio of 1.5. 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.
Kinross Gold Corporation (NYSE:KGC) has risen 2% and is currently trading at $10.58 per share. The company's volume for the day so far is 5.6 million shares. 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. The debt ratio shows the proportion of assets that a company is financing through debt. KGC has a low debt ratio of 25.1%. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
AngloGold Ashanti Limited (NYSE:AU) is trading at $34.69 per share, down 1.7%. With 898,352 shares changing hands so far today, the company's volume is 0.4 times the current three-month average. 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. The debt-equity (D/E) ratio is a leverage ratio. AU's debt-equity ratio of 44% 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 percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
Gold Fields Limited (NYSE:GFI) has fallen 1.4% and is currently trading at $12.71 per share. So far today, the company's volume is 2.1 million shares. This is about the same trading activity as there was yesterday. Volume indicates the level of interest that investors have in a company at its current price. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. GFI's P/B ratio of 1.6 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. A weakness of the P/B value ratio is that while the price component is easily determined by looking at the stock quote, the book value component is more difficult to estimate and more open to individual interpretation and analysis. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Goldcorp Inc (NYSE:GG) is down 1.2% to reach $45.64 per share. So far today, the company's volume is 1.9 million shares, 0.3 times the average daily volume. In technical analysis, trading volume is used to determine the strength of a market indicator. 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 P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. GG's P/E ratio of 29.4 is above the industry average of 0.45. 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: The P/E Ratio: A Good Market-Timing Indicator
Slipping 1.1%, Seabridge Gold, Inc (NYSE:SA) is currently trading at $19.04 per share. So far today, the company's volume is 46,619 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. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. The debt ratio for SA is a low 4.9%. 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.
Falling 1.1%, Silver Standard Resources Inc (Nasdaq:SSRI) is currently at a share price of $15.73. So far today, the company's volume is 187,720 shares, 0.1 times its current three-month average. Volume is used to evaluate how meaningful the price movement of a stock is. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. SSRI has a low debt-equity ratio of 13%. This shows that the company's assets are financed primarily through equity. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
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. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
by
Investopedia Staff
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