Yamana Gold (AUY) Stock Declining Today as Gold Prices FallBy twocents@thestreet (Amanda Schiavo) NEW YORK (TheStreet) -- Shares of Yamana Gold Inc. are lower by 2.95% to $3.95 in late morning trading on Wednesday, as some gold mining stocks retreat today along with the price of the precious metal. Gold for February delivery isBy twocents@thestreet (Amanda Schiavo) NEW YORK (TheStreet) -- Shares of Yamana Gold Inc. are lower by 2.95% to $3.95 in late morning trading on Wednesday, as some gold mining stocks retreat today along with the price of the precious metal. Gold for February delivery is down by 1.10% to $1,187.20 per ounce on the COMEX this morning. Gold is reversing gains it made yesterday thanks to a weak dollar. Today the currency is up 0.46%, according to the Wall Street Journal dollar index. Exclusive Report: Jim Cramers Best Stocks For 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. On Tuesday, an analyst speaking with CNBC predicted that the jump in gold prices was only temporary, and said gold could see new lows in the new year. I think its going lower, an analyst from Oppenheimer Asset Management told CNBC. I think a lot of these commodities that are priced in dollars are going to be pressured here. Its going to keep going lower, and I would expect new lows in 2015. I think theres a risk you could see $1,000. Separately, TheStreet Ratings team rates YAMANA GOLD INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: We rate YAMANA GOLD INC (AUY) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The companys weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself. Highlights from the analysis by TheStreet Ratings Team goes as follows: YAMANA GOLD INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, YAMANA GOLD INC swung to a loss, reporting -$0.59 versus $0.59 in the prior year. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 2455.0% when compared to the same quarter one year ago, falling from $43.45 million to -$1,023.27 million. Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, YAMANA GOLD INCs return on equity significantly trails that of both the industry average and the S&P 500. Despite any intermediate fluctuations, we have only bad news to report on this stocks performance over the last year: it has tumbled by 55.50%, worse than the S&P 500s performance. Consistent with the plunge in the stock price, the companys earnings per share are down 2050.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stocks sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now. AUYs debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.38 is very weak and demonstrates a lack of ability to pay short-term obligations. You can view the full analysis from the report here: AUY Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Click to view a price quote on AUY. Click to research the Metals & Mining industry. ift.tt/1gB4pon
Posted on: Wed, 31 Dec 2014 17:26:01 +0000
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