Timmins Gold Corp T.TMM

VectorVest Analysis of TMM

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VectorVest Stock Analysis of Timmins Gold Cp as of 8/6/2010

Summary Analysis

TMM is undervalued compared to its Price of $1.72 per share, has somewhat below average safety, and is currently rated a Buy.

Graphs

Timmins Gold Cp

Mining (Other)

Detailed Analysis
Company Information
Business: Timmins Gold Cp, (TMM) Timmins Gold Corp., through its subsidiary, Timmins Goldcorp Mexico, S.A. de C.V, engages in the acquisition, exploration, and evaluation of mineral resource properties in Mexico. It explores primarily for gold ores. The company was incorporated in 2005 and is based in Vancouver, Canada.

Capital Appreciation

Value: Value is a measure of a stock's current worth. TMM has a current Value of $3.18 per share. Therefore, it is undervalued compared to its Price of $1.72 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. VectorVest advocates the purchase of undervalued stocks. At some point in time, a stock's Price and Value always will converge.

RV (Relative Value): RV is an indicator of long-term price appreciation potential. TMM has an RV of 1.50, which is excellent on a scale of 0.00 to 2.00. This indicator is far superior to a simple comparison of Price and Value because it is computed from an analysis of projected price appreciation three years out, Scotia Capital Incorporated Corporate Long Term Bonds, and risk. RV solves the riddle of whether it is preferable to buy High growth, High P/E stocks, or Low growth, Low P/E stocks. VectorVest favors the purchase of stocks with RV ratings above 1.00.

RS (Relative Safety): RS is an indicator of risk. TMM has an RS rating of 0.79, which is poor on a scale of 0.00 to 2.00. RS is computed from an analysis of the consistency and predictability of a company's financial performance, debt to equity ratio, sales volume, business longevity, price volatility and other factors. A stock with an RS rating greater than 1.00 is safer and more predictable than the average stock in the VectorVest database. VectorVest favors the purchase of stocks of companies with consistent, predictable financial performance.

RT (Relative Timing): RT is a fast, smart, accurate indicator of a stock's price trend. TMM has a Relative Timing rating of 1.59, which is excellent on a scale of 0.00 to 2.00. RT is computed from an analysis of the direction, magnitude, and dynamics of a stock's price movements over one day, one week, one quarter and one year time periods. Once a stock's price has established a strong trend, it is expected to continue in that trend for the short-term. If a trend dissipates, RT will gravitate toward 1.00. RT will explode from bottoms, dive from tops, and reflect changes in price momentum. VectorVest favors the purchase of stocks with RT ratings above 1.00.

VST (VST-Vector): VST is the master indicator for ranking every stock in the VectorVest database. TMM has a VST rating of 1.35, which is very good on a scale of 0.00 to 2.00. VST is computed from the square root of a weighted sum of the squares of RV, RS, and RT. Stocks with the highest VST ratings have the best combinations of Value, Safety and Timing. These are the stocks to own for above average, long-term capital appreciation. VectorVest advocates the purchase of safe, undervalued stocks rising in price.

Recommendation (REC): VectorVest gives a Buy, Sell, Hold recommendation on every stock, every day. TMM has a Buy recommendation. REC reflects the cumulative effect of all the VectorVest parameters working together. These parameters are designed to help investors buy safe, undervalued stocks rising in price. They also help investors avoid or sell risky, overvalued stocks falling in price. VectorVest recommends that investors buy high VST-Vector, Buy-rated stocks in rising markets.

Stop (Stop-Price): Stop is an indicator of when to sell a long position or cover a short position. TMM has a Stop of $1.46 per share. This is
.26 below TMM's current closing Price. A stock's Stop is computed from a 13 week moving average of its closing prices, and is fine-tuned according to the stock's fundamentals. High RV, high RS stocks have lower Stops, and low RV, low RS stocks have higher Stops. In the VectorVest system, a stock gets a 'B' or 'H' recommendation if its Price is above its Stop and an 'S' recommendation if its Price is below its Stop.

GRT (Earnings Growth Rate): GRT reflects a company's one to three year forecasted earnings growth rate in percent per year. TMM has a forecasted Earnings Growth Rate of 35.00%, which VectorVest considers to be excellent. GRT is computed from historical, current and forecasted earnings data. It is updated each week for every stock in the VectorVest database. GRT often foretells a stock's future price trend. If a stock's GRT trend is upward, the stock's price will likely rise. If GRT is trending downward, the stock's Price will probably fall. VectorVest favors the purchase of stocks whose GRT is rising and is greater than the sum of current inflation and interest rates, as shown weekly in our investment climate report.

EPS (Earnings per Share): EPS stands for leading 12 months Earnings Per Share. TMM has a forecasted EPS of
.14 per share. VectorVest determines this forecast from a combination of recent earnings performance and traditional fiscal and/or calendar year earnings forecasts.

P/E (Price to Earnings Ratio): P/E is a popular measure of stock valuation which shows the dollars required to buy one dollar of earnings. TMM has a P/E of 12.29. This ratio may be deemed to be high or low depending upon your frame of reference. The average P/E of all the stocks in the VectorVest database is 58.95. P/E is computed daily using the formula: P/E = Price/EPS.

EY (Earnings Yield): EY reflects earnings per share as a percent of Price. EY is related to P/E via the formula, EY = 100 / (P/E), and may be used in place of P/E as a measure of valuation. EY has the advantages that it is always determinate and can reflect negative earnings. TMM has an EY of 8.26 percent. This is above the current average of 1.70% for all the stocks in the VectorVest database. EY equals 100 x (EPS/Price).

YSG (YSG-Vector): YSG is an indicator which combines DIV, DY and DG into a single value, and allows direct comparison of all dividend-paying stocks in the database. TMM does not pay a dividend, so it does not have a YSG rating . Stocks with the highest YSG values have the best combinations of Dividend Yield, Safety and Growth. These are the stocks to buy for above average current income and long-term growth.

Price-Volume Data

Price: TMM closed on 8/6/2010 at $1.72 per share

Open: TMM opened trading at a price of $1.75 per share on 8/6/2010.

High: TMM traded at a High price of $1.75 per share on 8/6/2010.

Low: TMM traded at a Low price of $1.68 per share on 8/6/2010

Close: TMM closed trading at price $1.72 per share on 8/6/2010. (Close is also called Price in the VectorVest system)

Range: Range reflects the difference between the High and Low prices for the day. TMM traded with a range of
.07 per share on 8/6/2010.

$Change: TMM closed up 0.02 from the prior day's closing Price.

%PRC: TMM's Price changed 1.18% from the prior day's closing price.

Volume: TMM traded 353,324 shares on 8/6/2010.

AvgVol: AvgVol is the 50 day moving average of daily volume as computed by VectorVest. TMM has an AvgVol of 456,200 shares traded per day.

%Vol: %Vol reflects the percent change in today's trading volume as compared to the AvgVol. %Vol equals ((Volume - AvgVol) / AvgVol ) * 100. TMM had a %Vol of -22.55% on 8/6/2010

CI (Comfort Index): CI is an indicator which reflects a stock's ability to resist severe and/or lengthy price declines. TMM has a CI rating of 1.72, which is excellent on a scale of 0.00 to 2.00. CI is quite different from RS in that it is based solely upon a stock's long-term price history. VectorVest advocates the purchase of high CI stocks.