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 or Stephanie Link.
Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified AuRico Gold as such a stock due to the following factors:
- AUQ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.8 million.
- AUQ has traded 745,618 shares today.
- AUQ is trading at 5.46 times the normal volume for the stock at this time of day.
- AUQ is trading at a new low 6.12% 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 AUQ:
AuRico Gold Inc. operates as a gold producer with mines and projects in North America. The stock currently has a dividend yield of 0.2%. Currently there are 3 analysts that rate AuRico Gold a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for AuRico Gold has been 3.8 million shares per day over the past 30 days. AuRico has a market cap of $878.4 million and is part of the basic materials sector and metals & mining industry. Shares are up 19.5% year-to-date as of the close of trading on Tuesday.
rates AuRico Gold as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- AURICO GOLD INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, AURICO GOLD INC reported poor results of -$0.77 versus -$0.44 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 205.8% when compared to the same quarter one year ago, falling from $14.86 million to -$15.72 million.
- Net operating cash flow has significantly decreased to $2.79 million or 88.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The share price of AURICO GOLD INC has not done very well: it is down 12.75% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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 return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, AURICO GOLD INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full AuRico Gold Ratings Report.