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Gold and Silver Stocks, Including Newmont Mining, Making Big Moves on September 4, 2012
This morning's trading has marked a bad day for the market so far. The Nasdaq is down 0.8%; the S&P 500 has fallen 0.6%; and the Dow has decreased 0.8%.
Despite a bad day for the market overall so far, the Gold and Silver sector (SLV) is up 1% and its biggest movers are currently:
Broker Summary: TD Ameritrade Thinkorswim
Harmony Gold Mining Co (NYSE:HMY) is trading at $8.26 per share, down 3.3%. The company's volume for the day so far is 1.3 million shares. This is on pace to fall short of yesterday's volume of 4.1 million shares. Volume is used to evaluate how meaningful the price movement of a stock is. 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 easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. HMY's debt ratio of 21.8% is on the low side. 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.
Silver Standard Resources Inc (Nasdaq:SSRI) is up 3.2% to reach a current price of $15.31 per share. The company's volume is currently 773,488 shares for the day, 0.6 times the average daily volume. A stock's volume conveys how excited investors are about it. 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. 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. SSRI's P/S ratio of 7.49 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.
After rising 2.9%, Endeavour Silver Corp (NYSE:EXK) is currently trading at a share price of $9.15. This morning, the company is trading a volume of 876,020 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. 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 most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). EXK has a P/E ratio of 29.6, high compared to the industry average of 1.63. This could mean that the market is expecting big things over the next few months or years. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Profit With The Power Of Price-To-Earnings
Compania de Minas Buenaventura SA (NYSE:BVN) has decreased to $33.75 per share, a 2.6% fall. The company's volume is currently 412,674 shares for the day, in keeping with its current three-month average. High volume indicates a lot of investor interest while low volume indicates the opposite. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. BVN has a P/B ratio of 2.51 which shows that its share price is higher than its book value. 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. Users need to be careful when applying this ratio though, as it is more useful for industrial companies that have a lot of tangible assets than it is for technology or consumer product companies that may not have much in the way of hard assets. SEE: How Buybacks Warps The Price-To-Book Ratio
Newmont Mining (NYSE:NEM) is currently trading at a share price of $49.40, a 2.5% decline. The company is trading at a volume of 2.6 million shares. This is on pace to fall short of yesterday's volume of 7.5 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. 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. Dividend yield measures the income that a stock will generate for an investor. NEM's dividend yield is 2.8%. Just as with the yield on a bond or certificate of deposit, the higher the dividend yield, the higher the return to the investor. SEE: Investment Valuation Ratios: Dividend Yield
Silvercorp Metals Inc (NYSE:SVM) is currently trading at $6.02 per share, a 2.4% increase. So far today, the company's volume is 697,212 shares, in keeping with 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 debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. The debt ratio for SVM is a low 24.9%. 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.
AngloGold Ashanti Limited (NYSE:AU) has fallen 2% and is currently trading at $31.27 per share. The company is currently trading a volume of 566,053 shares. Volume indicates the level of interest that investors have in a company at its current price. 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/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. AU has a high P/S ratio of 2.06. This could be a good sign if the share price increases. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. It is important to weigh current activity against historical performance when making any investment decisions. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.
Despite a bad day for the market overall so far, the Gold and Silver sector (SLV) is up 1% and its biggest movers are currently:
| Company | Market Cap | Percentage Change |
| Harmony Gold Mining Co (NYSE:HMY) | $3.67 billion | -3.3% |
| Silver Standard Resources Inc (Nasdaq:SSRI) | $1.2 billion | +3.2% |
| Endeavour Silver Corp (NYSE:EXK) | $881.7 million | +2.9% |
| Compania de Minas Buenaventura SA (NYSE:BVN) | $8.82 billion | -2.6% |
| Newmont Mining (NYSE:NEM) | $24.9 billion | -2.5% |
| Silvercorp Metals Inc (NYSE:SVM) | $1 billion | +2.4% |
| AngloGold Ashanti Limited (NYSE:AU) | $12.29 billion | -2% |
Harmony Gold Mining Co (NYSE:HMY) is trading at $8.26 per share, down 3.3%. The company's volume for the day so far is 1.3 million shares. This is on pace to fall short of yesterday's volume of 4.1 million shares. Volume is used to evaluate how meaningful the price movement of a stock is. 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 easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. HMY's debt ratio of 21.8% is on the low side. 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.
Silver Standard Resources Inc (Nasdaq:SSRI) is up 3.2% to reach a current price of $15.31 per share. The company's volume is currently 773,488 shares for the day, 0.6 times the average daily volume. A stock's volume conveys how excited investors are about it. 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. 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. SSRI's P/S ratio of 7.49 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.
After rising 2.9%, Endeavour Silver Corp (NYSE:EXK) is currently trading at a share price of $9.15. This morning, the company is trading a volume of 876,020 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. 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 most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). EXK has a P/E ratio of 29.6, high compared to the industry average of 1.63. This could mean that the market is expecting big things over the next few months or years. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Profit With The Power Of Price-To-Earnings
Compania de Minas Buenaventura SA (NYSE:BVN) has decreased to $33.75 per share, a 2.6% fall. The company's volume is currently 412,674 shares for the day, in keeping with its current three-month average. High volume indicates a lot of investor interest while low volume indicates the opposite. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. BVN has a P/B ratio of 2.51 which shows that its share price is higher than its book value. 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. Users need to be careful when applying this ratio though, as it is more useful for industrial companies that have a lot of tangible assets than it is for technology or consumer product companies that may not have much in the way of hard assets. SEE: How Buybacks Warps The Price-To-Book Ratio
Newmont Mining (NYSE:NEM) is currently trading at a share price of $49.40, a 2.5% decline. The company is trading at a volume of 2.6 million shares. This is on pace to fall short of yesterday's volume of 7.5 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. 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. Dividend yield measures the income that a stock will generate for an investor. NEM's dividend yield is 2.8%. Just as with the yield on a bond or certificate of deposit, the higher the dividend yield, the higher the return to the investor. SEE: Investment Valuation Ratios: Dividend Yield
Silvercorp Metals Inc (NYSE:SVM) is currently trading at $6.02 per share, a 2.4% increase. So far today, the company's volume is 697,212 shares, in keeping with 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 debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. The debt ratio for SVM is a low 24.9%. 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.
AngloGold Ashanti Limited (NYSE:AU) has fallen 2% and is currently trading at $31.27 per share. The company is currently trading a volume of 566,053 shares. Volume indicates the level of interest that investors have in a company at its current price. 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/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. AU has a high P/S ratio of 2.06. This could be a good sign if the share price increases. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. It is important to weigh current activity against historical performance when making any investment decisions. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.
by
Investopedia Staff
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