Skip to main content

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

Emerald Oil

(

EOX

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

  • EOX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.2 million.
  • EOX has traded 321,544 shares today.
  • EOX is trading at 3.89 times the normal volume for the stock at this time of day.
  • EOX is trading at a new low 8.31% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in EOX with the Ticky from Trade-Ideas. See the FREE profile for EOX NOW at Trade-Ideas

More details on EOX:

Scroll to Continue

TheStreet Recommends

Emerald Oil, Inc. operates as an independent oil and natural gas exploration and production company in the United States. Currently there are 8 analysts that rate Emerald Oil a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Emerald Oil has been 1.8 million shares per day over the past 30 days. Emerald Oil has a market cap of $230.7 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.43 and a short float of 25.1% with 6.45 days to cover. Shares are down 57.6% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Emerald Oil as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income has decreased by 13.2% when compared to the same quarter one year ago, dropping from -$1.72 million to -$1.95 million.
  • EOX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 60.56%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, EMERALD OIL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for EMERALD OIL INC is currently very high, coming in at 70.32%. Regardless of EOX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EOX's net profit margin of -7.92% significantly underperformed when compared to the industry average.
  • Net operating cash flow has significantly increased by 426.00% to $9.67 million when compared to the same quarter last year. In addition, EMERALD OIL INC has also vastly surpassed the industry average cash flow growth rate of -6.28%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null