The Value Trap: McEwen Mining Inc. (MUX), Alder Biopharmaceuticals, Inc. (ALDR)

McEwen Mining Inc. (NYSE:MUX) is offering a bear trap with a P/S ratio at 14.53. The broad Gold industry has an average P/S ratio of 12.37, which represents premium over the sector’s 3.67. In the past 13-year record, this ratio went down as low as 3.25 and as high as 415. Also, it is down from 86% of the total 673 rivals across the globe.

MUX traded at an unexpectedly high level on 12/01/2018 when the stock experienced a 2.59% gain to a closing price of $2.38. The company saw 3.81 million shares trade hands over the course of the day. Given that its average daily volume over the 30 days has been 2.48 million shares a day, this signifies a pretty significant change over the norm.

McEwen Mining Inc. (MUX) Analyst Gushes

Analysts are speculating a 110.08% move, based on the high target price ($5) for the shares that is set to reach in the next 12 months. The analysts, on average, are forecasting a $3.8 price target, but the stock is already up 30.77% from its recent lows. However, the stock is trading at -46.28% versus recent highs ($4.43). Analysts believe that we could see stock price minimum in the $3.15 range (lowest target price), allowing for another 32.35% jump from its current position. Leading up to this report, we have seen a 28.65% rise in the stock price over the last 30 days and a 13.33% increase over the past 3 months. Overall, the share price is up 4.39% so far this year. Additionally, MUX had a day price range of $2.32 to $2.395.

McEwen Mining Inc. (MUX) Price Potential

Heading into the stock price potential, McEwen Mining Inc. needs to grow just 36.55% to cross its median price target of $3.25. In order to determine directional movement, the 50-day and 200-day moving averages for McEwen Mining Inc. (NYSE:MUX) are $2.11 and $2.25. Given that liquidity is king in short-term, MUX is a stock with 334.41 million shares outstanding that normally trades 15.31% of its float. The stock price recently experienced a 5-day gain of 3.93% with 0.11 average true range (ATR). MUX has a beta of -1.3 and RSI is 62.31.

Investors also need to beware of the Alder Biopharmaceuticals, Inc. (NASDAQ:ALDR) valuations. The stock trades on a P/S of 1774.63, which suggests that the shares are not attractive compared with peers. The broad Biotechnology industry has an average P/S ratio of 145.91, which is significantly worse than the sector’s 6.56. In the past 5-year record, this ratio went down as low as 2.72 and as high as 16985. Also, it is down from 96% of the total 706 rivals across the globe.

Alder Biopharmaceuticals, Inc. (ALDR)’s Lead Over its Technicals

Alder Biopharmaceuticals, Inc. by far traveled 107.56% versus a 1-year low price of $8.60. The share price was last seen -0.28% lower, reaching at $17.85 on Dec. 01, 2018. At recent session, the prices were hovering between $17.2 and $18.35. This company shares are 34.45% off its target price of $24 and the current market capitalization stands at $1.25B. The recent change has given its price a 55.58% lead over SMA 50 and -29.86% deficit over its 52-week high. The stock witnessed 70% gains, 43.37% gains and 53.22% gains for the 1-month, 3-month and 6-month period, respectively. To measure price-variation, we found ALDR’s volatility during a week at 11.39% and during a month it has been found around 7.2%.

Alder Biopharmaceuticals, Inc. (NASDAQ:ALDR) Intraday Metrics

Alder Biopharmaceuticals, Inc. (ALDR) exchanged hands at an unexpectedly high level of 1.42 million shares over the course of the day. Noting its average daily volume at 1.09 million shares each day over the month, this signifies a pretty significant change over the norm.

Alder Biopharmaceuticals, Inc. Target Levels

The market experts are predicting a 185.71% rally, based on the high target price ($51) for Alder Biopharmaceuticals, Inc. shares that is likely to be hit in the 52 weeks. Analysts anticipate that traders could see stock price minimum in the $16 range (lowest target price). If faced, it would be a -10.36% drop from its current position. Overall, the share price is up 55.9% year to date.

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