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Yamana Gold Inc and Other Big Movers In Gold and Silver on October 4, 2012
After the morning's trading, the Nasdaq has remained steady, the S&P 500 is trading up 0.4% and the Dow has climbed 0.5%.
These are the biggest movers in the Gold and Silver sector (SLV) (+0.8%):
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First Majestic (NYSE:AG) has increased to a share price of $23.39, a 3.4% rise. The company's volume is currently 292,604 shares for the day, 0.2 times its current daily average. High volume indicates a lot of investor interest while low volume indicates the opposite. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. As with most ratios, comparisons of company price/earnings to growth ratios (PEG ratios) are most appropriate for similar companies. AG's PEG ratio of 2.73 is in line with the industry average. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Silver Wheaton Corp (NYSE:SLW) has risen 3.2% and is currently trading at $40.03 per share. So far today, the company's volume is 2.9 million shares. This is greater than yesterday's volume of 2.6 million shares. The trading volume for a stock indicates the level of investor interest. 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. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. Compared to the industry average of 2.64, SLW's P/E ratio of 24.2 is quite high. 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
Coeur d'Alene (NYSE:CDE) has moved up 2.9% and is currently trading at $28.62 per share. With 857,651 shares changing hands so far today, the company's volume is 0.3 times its current three-month average. 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. 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. The capitalizion ratio of 2.4% is on the low end. A very low capitalization ratio might be a sign that the company is stagnating and reducing the potential earnings for shareholders. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
Rising 2.9%, Yamana Gold Inc (NYSE:AUY) is currently trading at $19.21 per share. So far today, 3.1 million shares have changed hands. A stock's volume conveys how excited investors are about it. 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 price/book value ratio is calculated by dividing the current stock price by the company's book value per share. AUY's stock is trading for more than its book value with a P/B ratio of 1.87. This may be a sign that the company is overvalued. P/B has its shortcomings but is still widely used as a valuation metric, more relevant for use by investors looking at capital-intensive or finance-related businesses, such as banks; book value does not carry much meaning for service-based firms with few tangible assets. SEE: How Buybacks Warps The Price-To-Book Ratio
After an increase of 2.1%, Randgold Resources Ltd (Nasdaq:GOLD) has reached a current price of $125.11. The company's volume is currently 678,131 shares for the day, 0.7 times the current daily 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. 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. For investors primarily interested in the income a stock can generate, the dividend yield is an important determinant of how attractive a stock is. GOLD's dividend yield of 0.3% is fairly low. This could indicate that that the stock is overpriced or that future dividends might be higher. 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
Royal Gold (Nasdaq:RGLD) is up 2% to reach a current price of $99.26 per share. So far today, 187,309 shares of the company's stock have changed hands. This is on pace to fall short of yesterday's volume of 544,366 shares. 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. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. RGLD's P/S ratio of 17.46 is on the high side. 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.
Compania de Minas Buenaventura SA (NYSE:BVN) is currently trading at $38.90 per share, a 1.7% increase. So far today, the company's volume is 195,783 shares, 0.1 times its average over the past three months. 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. 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 easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. BVN has a debt ratio of 17.9%, which is fairly low. 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.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Daily stock performance should be weighed against historical performance and put in context of the market overall. 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 |
| First Majestic (NYSE:AG) | $2.61 billion | +3.4% |
| Silver Wheaton Corp (NYSE:SLW) | $13.72 billion | +3.2% |
| Coeur d\'Alene (NYSE:CDE) | $2.5 billion | +2.9% |
| Yamana Gold Inc (NYSE:AUY) | $14.02 billion | +2.9% |
| Randgold Resources Ltd (Nasdaq:GOLD) | $11.26 billion | +2.1% |
| Royal Gold (Nasdaq:RGLD) | $5.73 billion | +2% |
| Compania de Minas Buenaventura SA (NYSE:BVN) | $9.73 billion | +1.7% |
First Majestic (NYSE:AG) has increased to a share price of $23.39, a 3.4% rise. The company's volume is currently 292,604 shares for the day, 0.2 times its current daily average. High volume indicates a lot of investor interest while low volume indicates the opposite. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. As with most ratios, comparisons of company price/earnings to growth ratios (PEG ratios) are most appropriate for similar companies. AG's PEG ratio of 2.73 is in line with the industry average. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Silver Wheaton Corp (NYSE:SLW) has risen 3.2% and is currently trading at $40.03 per share. So far today, the company's volume is 2.9 million shares. This is greater than yesterday's volume of 2.6 million shares. The trading volume for a stock indicates the level of investor interest. 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. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. Compared to the industry average of 2.64, SLW's P/E ratio of 24.2 is quite high. 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
Coeur d'Alene (NYSE:CDE) has moved up 2.9% and is currently trading at $28.62 per share. With 857,651 shares changing hands so far today, the company's volume is 0.3 times its current three-month average. 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. 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. The capitalizion ratio of 2.4% is on the low end. A very low capitalization ratio might be a sign that the company is stagnating and reducing the potential earnings for shareholders. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
Rising 2.9%, Yamana Gold Inc (NYSE:AUY) is currently trading at $19.21 per share. So far today, 3.1 million shares have changed hands. A stock's volume conveys how excited investors are about it. 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 price/book value ratio is calculated by dividing the current stock price by the company's book value per share. AUY's stock is trading for more than its book value with a P/B ratio of 1.87. This may be a sign that the company is overvalued. P/B has its shortcomings but is still widely used as a valuation metric, more relevant for use by investors looking at capital-intensive or finance-related businesses, such as banks; book value does not carry much meaning for service-based firms with few tangible assets. SEE: How Buybacks Warps The Price-To-Book Ratio
After an increase of 2.1%, Randgold Resources Ltd (Nasdaq:GOLD) has reached a current price of $125.11. The company's volume is currently 678,131 shares for the day, 0.7 times the current daily 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. 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. For investors primarily interested in the income a stock can generate, the dividend yield is an important determinant of how attractive a stock is. GOLD's dividend yield of 0.3% is fairly low. This could indicate that that the stock is overpriced or that future dividends might be higher. 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
Royal Gold (Nasdaq:RGLD) is up 2% to reach a current price of $99.26 per share. So far today, 187,309 shares of the company's stock have changed hands. This is on pace to fall short of yesterday's volume of 544,366 shares. 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. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. RGLD's P/S ratio of 17.46 is on the high side. 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.
Compania de Minas Buenaventura SA (NYSE:BVN) is currently trading at $38.90 per share, a 1.7% increase. So far today, the company's volume is 195,783 shares, 0.1 times its average over the past three months. 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. 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 easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. BVN has a debt ratio of 17.9%, which is fairly low. 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.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Daily stock performance should be weighed against historical performance and put in context of the market overall. 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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