Trade-Ideas LLC identified

California Resources

(

CRC

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

  • CRC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.6 million.
  • CRC has traded 5.2 million shares today.
  • CRC is trading at 5.34 times the normal volume for the stock at this time of day.
  • CRC is trading at a new low 22.03% 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 CRC:

California Resources Corporation operates as an oil and natural gas exploration and production company in the State of California. It produces crude oil, natural gas, and natural gas liquids. The company holds interests in approximately 2.4 million net acres of mineral acreage. The stock currently has a dividend yield of 8.2%. Currently there is 1 analyst that rates California Resources a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for California Resources has been 15.9 million shares per day over the past 30 days. California has a market cap of $481.3 million and is part of the basic materials sector and energy industry. Shares are down 49.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates California Resources as a

sell

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

Highlights from the ratings report include:

  • Net operating cash flow has significantly decreased to -$9.00 million or 101.87% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 81.72%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 56.12% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • CALIFORNIA RESOURCES CORP 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 year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CALIFORNIA RESOURCES CORP reported poor results of -$9.25 versus -$4.98 in the prior year. This year, the market expects an improvement in earnings (-$0.87 versus -$9.25).
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has significantly decreased by 57.0% when compared to the same quarter one year ago, falling from -$2,091.00 million to -$3,282.00 million.
  • 37.63% is the gross profit margin for CALIFORNIA RESOURCES CORP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, CRC's net profit margin of -579.85% significantly underperformed when compared to the industry average.

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