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Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Gran Tierra Energy as such a stock due to the following factors:
- GTE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
- GTE has traded 690,680 shares today.
- GTE is trading at 8.44 times the normal volume for the stock at this time of day.
- GTE is trading at a new low 30.00% 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 GTE:
Gran Tierra Energy Inc., an independent energy company, is engaged in the acquisition, exploration, development, and production of oil and gas properties in Colombia, Peru, and Brazil. GTE has a PE ratio of 10.3. Currently there are 5 analysts that rate Gran Tierra Energy a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Gran Tierra Energy has been 1.4 million shares per day over the past 30 days. Gran Tierra Energy has a market cap of $993.8 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.19 and a short float of 0.3% with 0.71 days to cover. Shares are down 6.5% year-to-date as of the close of trading on Friday.
rates Gran Tierra Energy as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 33.7% when compared to the same quarter one year prior, rising from $33.06 million to $44.18 million.
- GTE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.75, which clearly demonstrates the ability to cover short-term cash needs.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.5%. Since the same quarter one year prior, revenues slightly dropped by 5.4%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- GTE'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 54.04%, which is also worse than the performance of the S&P 500 Index. 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.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, GRAN TIERRA ENERGY INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Gran Tierra Energy Ratings Report.