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Yamana Gold Inc Among Gold and Silver's Biggest Movers on October 5, 2012
It's been a good morning for the market. The Nasdaq has risen 0.2%; the S&P 500 has moved up 0.5%; and the Dow is trading up 0.5%.
Despite a good day for the overall market so far, the Gold and Silver sector (SLV) is down 0.7% and its current biggest movers are:
Broker Summary: TD Ameritrade Thinkorswim
After a decline of 2.8%, AuRico Gold (NYSE:AUQ) has hit a share price of $6.70. At 865,998 shares, the company's volume so far today is 0.3 times the current three-month average. 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. 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. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. AUQ's capitalization ratio is 1.1%, which is relatively low. Investors generally consider a company with low debt and high equity levels is a good quality investment. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.
Slipping 2.7%, Harmony Gold Mining Co (NYSE:HMY) is currently trading at $7.88 per share. This morning, the company is trading a volume of 2.6 million shares. Volume is used to evaluate how meaningful the price movement of a stock is. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. If the price/book value ratio of a stock is high, it may indicate that the stock is expensive, while a lower ratio may indicate that the stock is a bargain. HMY's P/B ratio of 0.78 indicates that its share price is lower than its book value. Industries that require more infrastructure capital (for each dollar of profit) will usually trade at P/B ratios much lower than those that don't. 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: Investment Valuation Ratios: Price/Book Value Ratio
After rising 2.4%, AngloGold Ashanti Limited (NYSE:AU) is currently trading at a share price of $33.86. The company's volume is currently 812,475 shares for the day, while it was 2.3 million shares yesterday. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. The P/E ratio for AU is 12.2, above the industry average of 0.45. 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: Profit With The Power Of Price-To-Earnings
Falling 2.1%, Kinross Gold Corporation (NYSE:KGC) is currently at a share price of $10.85. The company's volume for the morning is 4.7 million shares. This is 0.4 times its average daily volume. 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 allow the investor to make a quick determination as to a company's investment value. The dividend yield is measured by taking the annual dividends per share and dividing that number by the stock price. KGC has a low dividend yield of 1.4%. If you are an income investor, this stock may not be attractive to you. To calculate the dividend yield, divide the level of dividends by the stock price; the higher the yield, the more attractive the security. SEE: Due Diligence On Dividends
IAMGOLD Corporation (NYSE:IAG) has moved up 2% and is currently trading at $16.69 per share. With 1.7 million shares changing hands so far today, the company's volume is 0.4 times its average over the past three months. The trading volume for a stock indicates the level of investor interest. 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. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. The P/S ratio for IAG is 2.57, which is relatively high. This could be a good sign if the share price increases. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
At $19.23, Yamana Gold Inc (NYSE:AUY) has slipped 1.8%. The company is currently trading a volume of 2.1 million shares. If a stock price moves on high volume, this means that the change is a significant one. While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. 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. AUY's debt ratio of 32.3% is on the low side. 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.
Royal Gold (Nasdaq:RGLD) is down 1.4% to reach $98.14 per share. So far today, the company's volume is 186,821 shares, on pace to finish the day below yesterday's volume of 528,192 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. 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-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. The debt-equity ratio of 16% is relatively low. This shows that the company's assets are financed primarily through equity. 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.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. 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.
Despite a good day for the overall market so far, the Gold and Silver sector (SLV) is down 0.7% and its current biggest movers are:
| Company | Market Cap | Percentage Change |
| AuRico Gold (NYSE:AUQ) | $1.94 billion | -2.8% |
| Harmony Gold Mining Co (NYSE:HMY) | $3.5 billion | -2.7% |
| AngloGold Ashanti Limited (NYSE:AU) | $12.74 billion | +2.4% |
| Kinross Gold Corporation (NYSE:KGC) | $12.63 billion | -2.1% |
| IAMGOLD Corporation (NYSE:IAG) | $6.16 billion | +2% |
| Yamana Gold Inc (NYSE:AUY) | $14.71 billion | -1.8% |
| Royal Gold (Nasdaq:RGLD) | $5.86 billion | -1.4% |
After a decline of 2.8%, AuRico Gold (NYSE:AUQ) has hit a share price of $6.70. At 865,998 shares, the company's volume so far today is 0.3 times the current three-month average. 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. 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. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. AUQ's capitalization ratio is 1.1%, which is relatively low. Investors generally consider a company with low debt and high equity levels is a good quality investment. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.
Slipping 2.7%, Harmony Gold Mining Co (NYSE:HMY) is currently trading at $7.88 per share. This morning, the company is trading a volume of 2.6 million shares. Volume is used to evaluate how meaningful the price movement of a stock is. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. If the price/book value ratio of a stock is high, it may indicate that the stock is expensive, while a lower ratio may indicate that the stock is a bargain. HMY's P/B ratio of 0.78 indicates that its share price is lower than its book value. Industries that require more infrastructure capital (for each dollar of profit) will usually trade at P/B ratios much lower than those that don't. 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: Investment Valuation Ratios: Price/Book Value Ratio
After rising 2.4%, AngloGold Ashanti Limited (NYSE:AU) is currently trading at a share price of $33.86. The company's volume is currently 812,475 shares for the day, while it was 2.3 million shares yesterday. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. The P/E ratio for AU is 12.2, above the industry average of 0.45. 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: Profit With The Power Of Price-To-Earnings
IAMGOLD Corporation (NYSE:IAG) has moved up 2% and is currently trading at $16.69 per share. With 1.7 million shares changing hands so far today, the company's volume is 0.4 times its average over the past three months. The trading volume for a stock indicates the level of investor interest. 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. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. The P/S ratio for IAG is 2.57, which is relatively high. This could be a good sign if the share price increases. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
At $19.23, Yamana Gold Inc (NYSE:AUY) has slipped 1.8%. The company is currently trading a volume of 2.1 million shares. If a stock price moves on high volume, this means that the change is a significant one. While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. 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. AUY's debt ratio of 32.3% is on the low side. 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.
Royal Gold (Nasdaq:RGLD) is down 1.4% to reach $98.14 per share. So far today, the company's volume is 186,821 shares, on pace to finish the day below yesterday's volume of 528,192 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. 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-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. The debt-equity ratio of 16% is relatively low. This shows that the company's assets are financed primarily through equity. 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.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. 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.
by
Investopedia Staff
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