A-Mark Precious Metals, Inc. Shares Fall On Disappointing Earnings

Published 09/14/2017, 01:40 AM
Updated 03/09/2019, 08:30 AM

A-Mark Precious Metals, Inc. (NASDAQ: AMRK)

A-Mark Precious Metals, Inc. (AMRK), a global leader in precious metals trading company yesterday reported their fiscal fourth quarter 2017 financial results.

A-Mark reported fourth quarter net income of $1.2 million. A-Mark reported fourth quarter earnings of $0.17 per share. A-Mark reported fourth quarter revenues of $1.33 billion.

A-Mark Precious Metals, Inc.CEO’s Comments

A-Mark CEO Greg Roberts, said:

Our results for Q4 were consistent with our expectations, given the continued subdued market activity that persisted during the quarter. Most notably, we achieved our 14th consecutive quarter of profitability since becoming public, which is a testament to our continued execution of and ability to capitalize on our business plan.

With historically low sales levels at the U.S. mint reinforced by the sustained strength of the U.S. equities market as a whole, we continued to face headwinds which impacted demand for precious metals. Nevertheless, we were able to take advantage of trading opportunities in the period and experienced continued growth in our finance product offerings, further establishing our finance book as a meaningful source of income and predictability to our business model. In fact, net interest income in Q4 increased 42% year-over-year and 43% for the full fiscal year. Globe Newswire

AMRK Technical Analysis

AMRK opened trading yesterday at $18.06 which was up from the previous day’s trading close of $18.03. AMRK closed trading yesterday at $18.70 and spiked down after market to $16.02, equivalent to a 15% decrease from the closing price. Taking a look at the daily chart we can see the last time AMRK traded below these levels we have to go back to August 4th when it traded at $15.44.

Taking a closer look at the daily chart we can see that before the spike down AMRK had been in an overall upward trend dating back to July 25th when it traded at $14.76. AMRK has a float of 3.97 million shares and traded 2.26 times the normal daily trading volume on Tuesday.

For trading purposes, I would like to see AMRK open trading on Wednesday below $17.00 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap down.

Company Profile

A-Mark Precious Metals, Inc. operates as a precious metals trading company worldwide. The company offers gold, silver, platinum, and palladium in the form of bars, plates, powder, wafers, grains, ingots, and coins, as well as distributes gold and silver coins and bars from sovereign and private mints.

It also provides loans on precious metals, and rare coins and other collectibles collateral to coin dealers, collectors, and investors; storage solutions for precious metals and numismatic coins for financial institutions, dealers, investors, and collectors; and a range of logistics services, including storage, shipping, handling, receiving, processing, and inventorying of precious metals and custom coins.

In addition, the company offers various services comprising consignment and hedging, as well as customized finance and various liquidity programs, such as repurchase accounts and trade quotes in a range of foreign currencies. It serves mints, manufacturers and fabricators, refiners, coin and bullion dealers, e-commerce retailers, banks and other financial institutions, commodity brokerage houses, industrial users of precious metals, investors, and collectors. The company was founded in 1965 and is headquartered in Santa Monica, California.

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