Respective companies from the Basic Materials and Financials sectors go head-to-head in this week's StockRanks column. We'll look at four companies: two firms which have risen in the StockRanks; two which have fallen. As always, these are not investments tips, but should merely be read as a starting point for further research.
Basic Materials
Over the last week, British Polythene Industries (BPI) has jumped in the StockRanks by 15 points to 91. Aquarius Platinum (AQP), on the other hand, has dropped by 22 points and now has a StockRank of 36.
British Polythene Industries
British Polythene Industries (BPI) is a producer of polythene film in Europe. The company faced problems in the first half of 2014, as bad weather hurt demand for agricultural films. The company also faced setbacks in North America, as business was negatively impacted by the late delivery of replacement machinery. Revenues were actually lower in the first quarter of 2014 (£281m) as compared to the first quarter of 2013 (£282). This could help to explain why the company looks cheap, with a PE ratio of just 12.5, a P/S ratio of 0.3 and an overall ValueRank of 86.
Nevertheless, some of the company's raw material costs are falling and the management team reports that 'the order books are sound'. Perhaps these factors are causing the brokers to become increasingly optimistic about the firm. Brokers believe it is a 'Strong Buy' and analysts are upping the numbers. Since February, EPS estimates have risen from £58.05p to £61.73. Over the last month, the company has beaten the market by 1.5% and the firm's overall MomentumRank is 81 - in the top quintile of the market.
Aquarius Platinum
Aquarius Platinum (AQP) is engaged in mine development, concentrate production and investment. The company has had its spate of bad luck this year. On 13 October, a Team Leader at the company's Kroondal mine in South Africa was fatally injured in a fall of ground incident. The management therefore suspended operations at the mine. Just two days later, a deal between Aquarius and a Chinese consortium of businesses fell through. Back in January, Aquarius agreed to sell the Chinese consortium its interests in Blue Ridge Platinum (Pty) Ltd and Sheba's Ridge Platinum (Pty) Ltd. The sale agreement was subject to a…
