Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Alamos Gold



) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Alamos Gold as such a stock due to the following factors:

  • AGI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.0 million.
  • AGI has traded 83,896 shares today.
  • AGI is trading at 2.16 times the normal volume for the stock at this time of day.
  • AGI is trading at a new low 4.08% 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 AGI:

Alamos Gold Inc., a gold mining company, engages in the exploration, mine development, and mining and extraction of precious metals, primarily gold. The company's primary asset is the Mulatos mine covering approximately 28,773 hectares of concessions in the state of Sonora, Mexico. The stock currently has a dividend yield of 0.9%. Currently there is 1 analyst that rates Alamos Gold a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Alamos Gold has been 776,100 shares per day over the past 30 days. Alamos has a market cap of $873.7 million and is part of the basic materials sector and metals & mining industry. Shares are down 3.8% year-to-date as of the close of trading on Friday.

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TheStreet Quant Ratings

rates Alamos Gold as a


. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, ALAMOS GOLD INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for ALAMOS GOLD INC is currently lower than what is desirable, coming in at 34.19%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 4.95% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $2.44 million or 66.41% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • ALAMOS GOLD INC reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, ALAMOS GOLD INC swung to a loss, reporting -$0.02 versus $0.30 in the prior year.
  • AGI has underperformed the S&P 500 Index, declining 17.34% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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