Anglogold Ashanti (AU) Weak On High Volume
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Anglogold Ashanti as such a stock due to the following factors:
- AU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.7 million.
- AU has traded 928,467 shares today.
- AU is trading at 3.23 times the normal volume for the stock at this time of day.
- AU is trading at a new low 10.04% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on AU:
AngloGold Ashanti Limited operates as a gold mining and exploration company. It also produces silver, uranium oxide, copper, molybdenum, and sulphur. The company has 20 operations and exploration projects in South Africa, Continental Africa, Australasia, and the Americas. Currently there are 3 analysts that rate Anglogold Ashanti a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Anglogold Ashanti has been 4.8 million shares per day over the past 30 days. Anglogold Ashanti has a market cap of $3.2 billion and is part of the basic materials sector and metals & mining industry. Shares are down 13% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Anglogold Ashanti as a
. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- The debt-to-equity ratio of 1.42 is relatively high when compared with the industry average, suggesting a need for better debt level management.
- Net operating cash flow has declined marginally to $323.00 million or 4.15% when compared to the same quarter last year. Despite a decrease in cash flow ANGLOGOLD ASHANTI LTD is still fairing well by exceeding its industry average cash flow growth rate of -54.04%.
- AU has underperformed the S&P 500 Index, declining 10.10% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income has significantly decreased by 77.5% when compared to the same quarter one year ago, falling from -$80.00 million to -$142.00 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, ANGLOGOLD ASHANTI LTD underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full Anglogold Ashanti Ratings Report.
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