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Tickers in this Article: SVM, SA, PAAS, SSRI, RGLD, EXK, KGC
The morning has been bad for the market. The Nasdaq is down 0.2%; the S&P 500 is trading down 0.2%; and the Dow has slipped 0.2%.

The Gold and Silver sector (SLV) is currently lagging behind the overall market, down 0.5%, and its current biggest movers are:
CompanyMarket CapPercentage Change
Silvercorp Metals Inc (NYSE:SVM)$1.15 billion-3.9%
Seabridge Gold, Inc (NYSE:SA)$859.9 million-2.2%
Pan American Silver Corp (Nasdaq:PAAS)$3.13 billion+1.7%
Silver Standard Resources Inc (Nasdaq:SSRI)$1.3 billion+1.6%
Royal Gold (Nasdaq:RGLD)$5.56 billion-1.4%
Endeavour Silver Corp (NYSE:EXK)$1.01 billion-1.2%
Kinross Gold Corporation (NYSE:KGC)$11.7 billion-1.1%
Broker Summary: Charles Schwab Online Brokerage

After a decline of 3.9%, Silvercorp Metals Inc (NYSE:SVM) has hit a share price of $6.49. At 968,889 shares, the company's volume so far today is consistent with the volume from yesterday which is likely to result in less activity than yesterday's volume of 2.2 million shares. High volume indicates a lot of investor interest while low volume indicates the opposite. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. 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. SVM's debt ratio of 24.9% 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.

Slipping 2.2%, Seabridge Gold, Inc (NYSE:SA) is currently trading at $19.36 per share. So far today, 205,509 shares have changed hands. Volume is used to evaluate how meaningful the price movement of a stock is. 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. 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. The P/B ratio for SA is 3.84, indicating that the stock is trading for more 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. 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

Pan American Silver Corp (Nasdaq:PAAS) has risen 1.7% and is currently trading at $20.91 per share. So far today, the company's volume is 2.7 million shares, 1.1 times the average volume over the last three months. The trading volume for a stock indicates the level of investor interest. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. 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. PAAS has a low dividend yield of 1%. This may indicate that the company's stock is overpriced. 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: Dividend Yield For The Downturn

Silver Standard Resources Inc (Nasdaq:SSRI) is at $16.33 per share after an increase of 1.6%. So far today, the company's volume is 539,224 shares. This is 0.4 times the current daily average. Volume indicates the level of interest that investors have in a company at its current price. 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. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. SSRI has a high P/S ratio of 7.49. 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.

Royal Gold (Nasdaq:RGLD) has fallen 1.4% and is currently trading at $93.27 per share. This morning, 305,547 shares have been traded, on pace to finish the day below yesterday's volume of one million shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The debt ratio shows the proportion of assets that a company is financing through debt. RGLD has a low debt ratio of 22.5%. 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 1.2%, Endeavour Silver Corp (NYSE:EXK) is currently at a share price of $10.09. This morning, the company is trading a volume of 495,063 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. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. Compared to the industry average of 1.21, EXK's P/E ratio of 34.0 is quite high. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock

At $10.15, Kinross Gold Corporation (NYSE:KGC) has slipped 1.1%. With five million shares changing hands so far today, the company's volume is consistent with its current three-month average. If a stock price moves on high volume, this means that the change is a significant one. 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 capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. The capitalizion ratio of 8.3% is on the low end. Investors generally consider a company with low debt and high equity levels is a good quality investment. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.

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. 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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