Boston, MA 04/16/2014 (wallstreetpr) – Allied Nevada Gold Corp. (NYSEMKT:ANV) is a $385 million producer of silver and gold. The company performs exploration, development and mining activities in the state of Nevada.
The company is currently under investigation by several legal firms acting on behalf of shareholders. The investigators are seeking to unearth potential securities laws violation by the company and its officials. The probes follow announcements by ANV that are believed to have misrepresented or concealed facts concerning certain operation issues.
It is believed that the improper disclosures by the company could lead to significant negative impact on the shareholders. Many legal firms have joined the investigations that apparently bear a negative mark on the company’s reputation. The negative publicity around the company is already impacting shares.
Stock rating
The stock of Allied Nevada Gold Corp. (NYSEMKT:ANV) is rated a “hold” by TheStreet. The analysts observed that the company reveals strengths and weaknesses that make its complex justifying possible positive or negative performance. According to TheStreet, strength in ANV can be seen in its encouraging growth, in revenue and cash flow. Nonetheless, weaknesses show in faltering earnings per share, declining net income and lackluster stock performance.
The company’s revenue growth in the past quarter outpaced the industry average. Revenue grew at 8 percent against 7.9 percent of the industry average, suggesting slight improvement. The company’s cash flow growth rate also exceeded the industry average in the past quarter.
The growth in revenue had little positive impact on the bottom line that continued to decline.
Allied Nevada Gold Corp. (NYSEMKT:ANV) has suffered a decline in earnings per share in the recent quarters. Analysts anticipate the decline in earnings to continue into the coming year. EPS in the past fiscal year was 1 cent, down from 52 cents in the year before.
To sum up
The combination of the investigations and troubled operations do not come as good news for Allied Nevada Gold Corp. (NYSEMKT:ANV). On that note, investors are wise to stay on the sidelines of the stock, at least until the outcomes of the ongoing investigations.
